Alcoa Corporation Common Stock: A Blue Chip Stock to Watch

In the world of investing, blue chip stocks are the cream of the crop. They represent companies with strong financials, a long history of profitability, and a reputation for stability. One such blue chip stock is Alcoa Corporation Common Stock (NYSE: AA). This article delves into the details of Alcoa's common stock, exploring its market position, financial health, and investment potential.

Understanding Alcoa Corporation

Alcoa Corporation is a global leader in lightweight metals engineering and manufacturing, with a diverse portfolio of products and services. The company operates in three segments: Primary Metals, which includes aluminum smelting and production; Engineered Products and Solutions, which offers aerospace and automotive solutions; and Global Rolled Products, which includes flat-rolled aluminum products.

Market Position and Financial Health

Alcoa has a strong market position, with a global presence and a diverse customer base. The company's financial health is reflected in its consistent revenue growth and profitability. Over the past few years, Alcoa has seen significant improvements in its financial performance, with revenue increasing from 22.3 billion in 2016 to 24.5 billion in 2019.

Investment Potential

Investors are drawn to blue chip stocks like Alcoa Corporation Common Stock for several reasons. Firstly, the company's stable financial performance provides a level of security that is often not found in smaller, riskier stocks. Secondly, Alcoa has a history of returning value to shareholders through dividends and share buybacks. In fact, Alcoa has increased its dividend for 13 consecutive years, making it a Dividend Aristocrat.

Case Study: Alcoa's Dividend Growth

One of the most compelling reasons to invest in Alcoa Corporation Common Stock is its dividend growth. Let's take a look at the company's dividend history:

• 2010: $0.06 per share
• 2011: $0.08 per share
• 2012: $0.10 per share
• 2013: $0.12 per share
• 2014: $0.14 per share
• 2015: $0.16 per share
• 2016: $0.18 per share
• 2017: $0.20 per share
• 2018: $0.22 per share
• 2019: $0.24 per share

As you can see, Alcoa has consistently increased its dividend over the past decade, making it an attractive investment for income-seeking investors.

Conclusion

In conclusion, Alcoa Corporation Common Stock is a blue chip stock that offers investors a combination of stability, growth, and dividends. With a strong market position, a history of financial success, and a commitment to shareholder value, Alcoa is a company worth considering for your investment portfolio.