Alcoa: Where's The Dividend?

Alcoa (NYSE: AA) was one of the highflyers of 2016, and now investors are taking their foot off the gas pedal. Why? Investors are likely waiting for more news and trade data out of China in order to confirm that aluminum can go higher and break the key resistance level of $2,000/mt. Furthermore, investors want to see Alcoa have earnings strength after posting a loss on the full fiscal-year 2016. Right now, I think the downtrend will continue until we receive either positive trade data financial data during earnings season or until the company unveils a plan for paying a competitive dividend.

Source: Bellingham Herald
No Dividend And Investors Taking Gains
Alcoa's stock has rallied to a level not seen in quite some time. After peaking around $39, the stock has taken off some steam by about 10% and settled around the $34 level. The core moving averages are trending upwards still, so I'm inclined to believe that, at least in the short term, this company will see some strength; however, it's going to take a reversal of this downtrend back above the 50 DMA in order for that to happen. However, just because the technicals say that this stock should kick up sometime soon doesn't mean the fundamentals warrant it, and I think the stock has a large problem in that it doesn't pay a dividend.

Source: Bloomberg
I do find it hard to believe that long-term investors are going to want a piece of this company considering the yield is nonexistent. While... Read more

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