Goldcorp hikes dividend again |
Financial Post - Dec 5, 2011 |
When Goldcorp Inc. announced its third quarter results in October, the company strongly hinted that a dividend hike was around the corner. On Monday, it became official.
The Vancouver-based mining giant said it is hiking its annual payout 32% to US54˘ a share. Goldcorp pays its dividend on the monthly basis, so the individual payouts will be US4.5˘ a share.
This is the company’s third dividend increase in just over a year. As recently as last year, the monthly dividend was just US1.5˘ a share.
“This action underscores Goldcorp’s unique ability to generate the cash flows necessary to both invest significantly in the strongest growth profile in the gold sector and to provide regular dividend growth for the benefit of our shareholders,” chief executive Chuck Jeannes said in a statement.
Like other senior gold producers, Goldcorp is hauling in more cash than it can spend at gold prices above US$1,700 an ounce, making dividend hikes a logical move. Gold mining stocks have under-performed gold bullion over the last few years, and higher dividends are seen by investors as one tool to reverse that trend.
Read Full Article from Financial Post
- Posted: 2011-12-05 13:12:21
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