OCR Text |
Show HOW THE HCDIA HEKDWITC Larger Dividend Follows a General Betterment in All Departments. The Anacanda Copper company yesterday yester-day increased Its dividend rate from 50 J cents to 7fi centB quarterly, thus placing the stock on a 53 per annum basis. This dividend, in addition to htng of went importance im-portance to tho holders of Anaconda, means much to Amalgamated, of which Anaconda is Its principal asset, mys Thompson, Towle &. Co. The Increase In Anaconda's dividend was Justified for. in addition to the company's com-pany's large surplus, there b still a large margaln abo'o the now .dividend requirements. require-ments. Anaconda's costs havo advanced as a result of the increased Wages which the company is now forced to pny. On the other hand, tho efficiency in operation is steadily tendlntr to bring about a lower cost. Allowing for these condltlona, and crediting the profits from custom orrs. this figure at the present time If? In the neighborhood of J)j cents per pound. On the present production of .100,000,000 pounds of copper at the prexailing price of the ntetnl, Anaconda's earnings nro approximately S24.700.000 per annum or $5.70 per sharo. This would indicate a surplus above requirements? of nearly ?12,-000.000 ?12,-000.000 per annum. Tho Increase In Anaconda's dividend means a large additional income to the Amalgamated company. Ab Amalgamated is now paying S4 pn- share a year. With its equity in Anaconda and its various other holdings. It Is earning more than $111 per share. It will be seen from thff above that Amalgamated Is in a very strong position as regards earnings and that yesterday's increase in Anaconda's dividend should make possible the early placing of the Amalgamated company upon a 6 per cent basis. |