Alcoa Corp. jumped 5% in premarket trading as it will pay first dividend since 2016.

Alcoa Corp. jumped 5% in premarket trading as it will pay first dividend since 2016.Alcoa Corp. reported stronger sales for the third quarter, driven by a rise in aluminum and alumina prices as well as higher premiums for value-add products. Alcoa's adjusted profit was $2.05 a share, pulling ahead of analysts' expectations of $1.76 a share for that metric. Alcoa said sales increased to $3.11 billion from $2.37 billion over last year, topping analysts' consensus estimate of $2.93 billion.

The company will pay out a 10-cent dividend to be paid on November 19th for stockholders of record at the close of business on Oct. 29. This is the first time Alcoa has paid a dividend since it split from the jets- and auto-parts business in 2016. The company also announced a share repurchase program of $500 million.