Aluminum supplier Alcoa The stock rose in Friday morning trading after a strong quarter and the introduction of a new dividend program.

Company reportedEarnings per share were $1.76/share, which is $2.05 on an adjusted base. This represents both a sequential improvement as well as a reverse from Q32020’s loss of money. The sequential rise of 13.5% in the third-party average price for primary aluminum, another sign of rising commodity prices over the past months, drove its revenue growth.

Alcoa’s quarter produced $352M in cash flow, and the company also called out its improved balance sheet, with no debt maturities until 2027.

Alcoa CEO and President, Roy Harvey, said, “The strategic work we’ve been implementing across our Company has helped us effectively capture the benefits from very strong market fundamentals and deliver another excellent quarter with record profitability. Today, Alcoa is stronger and better poised for the future, and we plan to continue our positive momentum and consistently deliver value through the commodity cycle.”

With this thought in mind, the company could institutedA buyback and dividend program. Although the quarterly dividend begins at $.1/share (or an annual yield at.7% at post-earnings shares price), the $500M buyback might be more robust as it would roughly cover 4.75% if the share outstanding were sold at the current price.

More significant to investors may be the company’s comments: “Based on our view of markets and expected cash flows, we believe these programs can be sustained through the commodity cycle,” Harvey said. CFO William Oplinger added, ““The share repurchase program will be financed by operating cash flows and cash on hand, as the balance sheet has continued to strengthen with proportional adjusted net debt is at its lowest level since the inception of our Company in 2016.”

The Peers include Constellium Nv (NYSE) (2.4%), Kaiser Aluminum Corporation (NASDAQ:) Corporation (2.75%) and Arconic (2.5%) are the latest to trade up in the stock market.