Southern Copper Declares $3.23 Per Share Combined Cash and Stock Dividend After Q2 2026 Earnings

Dividend Composition and Valuation Details

Southern Copper’s board authorized a dividend combining a traditional cash payment with an equity distribution. The $1.10 quarterly cash dividend per share provides direct cash returns, while the 0.0120 stock dividend increases shareholders’ equity stakes. The aggregate value of $3.23 per share is based on the July 16, 2026 average share price of $177.32, calculated as the midpoint between the day’s high and low prices.

The company’s use of a specific share price reference date ensures consistent valuation between cash and stock components. Shareholders receiving fractional stock shares will be compensated in cash at the same $177.32 price, ensuring equitable treatment across all holdings.

Record Date and Payment Schedule

The dividend record date is set for August 11, 2026, at market close, with payments to be made on August 27, 2026. This timeline allows sufficient administrative processing. Shareholders on record as of August 11 will receive the full dividend, including both cash and stock portions.

Scheduled for late summer, the dividend payment follows the board’s July 16 authorization, providing a six-week window for coordination and shareholder notification. Southern Copper’s listings on the New York Stock Exchange and Lima Stock Exchange necessitate synchronized dividend administration across both markets.

Stock Price Reference Methodology

The $177.32 price used to value the stock dividend represents the average of the high and low share prices on July 16, 2026, the date the dividend was authorized. This approach aligns the stock dividend valuation directly with market activity on the authorization date, rather than relying on other periods or historical averages.

The filing does not specify the exact high and low prices on July 16, nor does it disclose share price movements or trading volumes following the July 21 announcement. The immediate market impact remains unclear based on publicly available data.

Context of Q2 2026 Financial Results

The dividend declaration coincided with Southern Copper’s Q2 2026 financial results release, covering operations through June 30, 2026. While the press release was filed as an exhibit, detailed operational and financial metrics were not included in the current report. This timing reflects common practice of aligning dividend announcements with quarterly earnings updates.

The dividend continues the company’s regular quarterly payout pattern, signaling sustained capital returns amid ongoing copper operations and market conditions. The combined $3.23 per share dividend highlights strong capital availability for shareholders during the quarter.

Stock Dividend Impact on Shareholders and Dilution

The stock dividend of 0.0120 shares per share modestly increases shareholders’ share counts while preserving proportional ownership. For example, holders of 1,000 shares would receive 12 additional shares plus the $1.10 per share cash dividend. Fractional shares are converted to cash to ensure all shareholders benefit regardless of shareholding size.

This 1.2% stock dividend supplements the substantial cash payout, enabling capital distribution through both cash and equity without significantly diluting existing shareholdings. The filing does not disclose total shares outstanding before or after the dividend.

Corporate and Regulatory Information

Southern Copper Corporation is incorporated in Delaware with headquarters in Phoenix, Arizona. It is registered under the Securities Exchange Act of 1934 (File Number 1-14066) and holds IRS Employer Identification Number 13-3849074. The company is not classified as an emerging growth company, reflecting its established public status.

Its common stock trades on the New York Stock Exchange under ticker SCCO and on the Lima Stock Exchange, reflecting significant Peruvian operations. Dual listings require coordinated dividend payments and shareholder communications across both regulatory environments.

Disclosure and Registration Statement Clarifications

Southern Copper clarified that the information, including the press release exhibit, is furnished rather than filed under Section 18 of the Securities Exchange Act of 1934. Consequently, this disclosure will not be automatically incorporated by reference into future registration statements unless specifically referenced. This standard approach applies to current reports covering quarterly results and dividend announcements.

Investors should note this distinction when reviewing Southern Copper’s filings. The current report officially notifies the dividend authorization and record date, while comprehensive financial details are available in the attached press release and subsequent quarterly or annual reports.

Capital Allocation Strategy Reflected in Dividend Policy

The $3.23 per share total dividend for Q2 2026 reflects Southern Copper’s capital allocation strategy, balancing shareholder returns with operational investments. The stable $1.10 cash dividend combined with the 0.0120 stock dividend demonstrates confidence in the company’s financial strength and cash flow generation in early 2026.

This dual-component dividend offers flexibility in capital distribution, allowing returns via cash or equity depending on shareholder preference. Valuing both components at the consistent $177.32 share price ensures equitable economic value. The ongoing quarterly dividend signals a sustainable level of capital return aligned with operational performance during the period.