Covered, but half the payout is variable. A 0.92% yield on a 29.41% trailing payout is covered — but only half of it is a fixed promise. The $0.15 quarterly dividend declared Sep. 23, 2026 is $0.075 of base dividend plus $0.075 of variable dividend under a performance-based framework, so the income falls with copper when copper falls.
Key risk: Commodity exposure — the variable half of the dividend, and the earnings behind both halves, ride copper, gold, and molybdenum prices, plus the Grasberg minerals district in Indonesia.
Changes if: The variable dividend is suspended or the base dividend is cut — either would confirm the payout is tracking the commodity cycle, not compounding through it.
- ✓Payout-coverage check: 29.41% trailing payout — the $0.60 indicated dividend is well covered by trailing earnings.
- !Yield check: 0.92% indicated — $0.15/qtr × 4 at the $65.18 close on Oct. 23, 2026. Real cash, but modest, and half of it is variable rather than fixed.
- !Dividend growth check: Flat at $0.15 a quarter through 2026, unchanged since 2022 — no growth in the current year, by design of the base-plus-variable framework.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.