Earnings for this company have surpassed Previous Year Actual numbers for the last 6 consecutive quarters. PCU is still a great stock to have in the portfolio.
If you understand the cash cow relationship between PCU and its parent company Grupo Mexico [GMEXICOB.MX], you understand why the dividend policy is so generous. In the chart period (2003 to date), PCU has paid out U$19.64 in dividends. And if you'd bought the stock in January 2003, you would have paid U$15 for the stock.....that's what's called a good deal. Since then the stock has been a star performer, and here's the long term stock performance.
All very impressive. So while copper (and other metals prices) remain high, so will the dividends. And so will the stock price. And this is demonstrated by the U$1.70 dividend that PCU will pay in June 2008 (that's the pink bar on the dividend chart), all through a period of industrial unrest. There's plenty of upside available once the stupidity at Cananea ends. PCU is an example of the best kind of investment advice; simple, logical and with a great track record. You buy a good stock and you hold it. Boring, but it works.
