First Majestic Hikes Dividend 217% Despite Missing Q2 Earnings Estimates

Key Facts

In a move reflecting the benefits of surging precious metals prices, First Majestic Silver announced a massive 217% hike in its quarterly dividend. This decision follows a 57% surge in Q2 revenue to $415.5 million, driven by increased cash reserves resulting from a rally in silver prices. Despite this robust top-line growth, the results fell short of Wall Street estimates for both revenue and earnings, with adjusted earnings hitting 21 cents per share against a consensus of 30 cents.

According to analyst data, this shift in capital return policy was supported by a 90% year-over-year rise in average realized silver prices and a 40% increase in gold prices. This performance helped adjusted EBITDA more than double to $257.1 million. The company further strengthened its financial position with $1.25 billion in treasury assets, enabling the repurchase of 1.2 million shares during the period.

Looking ahead, markets are monitoring production consistency as first-half silver production reached 7.3 million ounces, representing 50% of revised full-year guidance. With updated price levels unavailable at the close of July 30, 2026, investors are focused on the dividend payment scheduled for August 2026. Upcoming economic catalysts include Mexico's Balance of Trade data on July 27, which may impact the operating environment for the company's primary mining assets.