Commercial Metals stock gains after dividend raised 17%, new $350 million stock buyback plan announced

Shares of Commercial Metals Co. CMC, +0.37% tacked on 0.6% in premarket trading Wednesday, after the steel and metal products maker said it raised its dividend by 17% and announced a new $350 million stock repurchase program. The company said its new quarterly dividend of 14 cents a share, up from 12 cents a share, will be payable Nov. 10 to shareholders of record on Oct. 27. Based on Tuesday’s stock closing price of $32.21, the new annual dividend rate implies a dividend yield of 1.74%, compared with the implied yield for the S&P 500 SPX, -0.24% of 1.39%, according to FactSet. The new stock buyback program replaces the existing plan which had $27 million remaining as of Aug. 31. The new program represents about 9% of CMC’s market capitalization of $3.88 billion as of Tuesday’s close. The stock has run up 56.8% year to date through Tuesday, while the S&P 500 has gained 15.8%.