Alcoa Continues Dividend Payments Despite Consecutive Annual Losses

Alcoa, the Pittsburgh-based multinational, spends approximately €67 million annually on dividends, even after recording losses for two consecutive years. The company, under the leadership of Chairman and CEO Bill Oplinger, has maintained its dividend payout at $0.40 per share, amounting to $72 million per year.

Despite a significant turnaround in its financial performance, with net income dropping from €397 million in 2021 to losses of €94 million in 2022 and nearly €600 million in 2023, Alcoa has kept its dividend policy unchanged. This year's dividend yield stands at 1.1%, with Alcoa shares closing at $38.98 on Thursday.

Shareholders continue to receive dividends as a form of compensation for the company’s poor financial performance in the previous two years. Alcoa’s share price has increased by 14.6% so far in 2024, although it remains well below the peak of $92.79 reached in March 2022, driven by a surge in aluminum prices following the Russia-Ukraine conflict.