RE:RE:CASH DIVIDEND FOR THE FIRST QUARTER OF 2022 - $0.50 PER COMM
Kylemcc10 wrote: Wth why so low?
I'm also looking for that, they gave no info on reasoning that I seen. With the commodity price so high, was there any major slow down in shippings or payments from customers or is this the new normal?
Remember back in early December when I was running numbers and questioning where we were thinking the dividend was going and normalizing? This is not far off my worst case scenario, which I wasn't expecting. I was not that comfortable then with the direction the dividend was going nor the share price and I stayed on the sidelines and missed this almost 35% upward move, I was a little disappointed, but I hit on 27% gains in AEM, 60% gains in CJ and a smaller one in CNR since.
50 cents is about a 4% forward yield from here, the historical average 5 year yeild was 9.4 last I checked. I am expecting a huge sell off next week based on this news, hopefully the exits of long term holders get a good price and any new entries don't loose thier shirt. The sell off could be 50-60% and put the price back in the mid to low 20s eventually (I'm not calling this, it's just a possibility running numbers that I got $21.28 on based on $2 yearly divided by the 5 year average yeild) especially if the next one stays in this region.
Hopefully we hear what happened from management next week, but it should be noted this dividend payout is still double what was normal pre 2021, and Iron Ore is about double where it was back then, maybe this payout is the new expected normal, it seems a rational in line number compared to the wild payouts of 2021.