Ternium (TX), a Luxembourg-based producer of steel, offers a greater than 7% dividend return and solid growth attributes. So, let’s find out why it is wise to bet on the stock now, even though its EBITDA could decline in the fourth quarter. Read on.Based in Luxembourg, Ternium S.A. (TX) is Latin America’s leading flat steel producer, operating facilities in Mexico, Brazil, the Southern United States, and Central America. According to the company, its fourth quarter EBITDA is expected to decrease slightly. It is expected that the company’s volumes in the USMCA area will rise in the next quarter. Its shipments in Argentina are also forecast to be steady.

Since 2007, Texas has paid dividends every year. The dividends it pays have grown by a 38.1% annual rate of change over the last three years, and 26.4% in the past five. TX’s average four-year dividend yield is 3.62%. The current dividend, however, has a yield equivalent to 7.11%. The interim dividend was $0.08 per share ($0.80/ADS) paid on November 19. This totaled approximately $157,000,000. The stock has gained 7.2% in price over the past month and 24% over the past six months to close yesterday’s trading session at $40.77.

TX and Vale S.A. signed an agreement on August 19, to explore opportunities for developing steelmaking solutions that reduce carbon dioxide emissions. A Research and Markets report shows that the steel market will grow 614.20M tons per year over the next five-years. This is good news for Texas. Its near-term prospects are therefore promising.

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