Agnico Eagle Mines Ltd AEM

Dividend stuck at 2022's $1.60 rate despite gold up $500/oz

[PulpCutter]

Earth to AEM management: 

The days of 0% interest rates are over.  We can earn over 5% on 30-day Treasuries, in a currency that's appreciating versus most of the world.  Why should we leave our money parked with you?  Sure, gold is up. But the fruit of that move isn't making it's way to the shareholders.

Dividends should be budgeted, and quoted in press releases, as a function of OPERATING cash flow, not free cash flow.  Otherwise, every time there's an acquisition, and debt is taken on, shareholders get moved to the back of the bus.

Further, the NCIB share buyback is not "profit returned to the shareholders".  2023's buybacks barely covered the shares handed out to management; the NCIB is 'profits handed to management'.

[robert41]

I like the capital appreciation better than the divi even double triple or more the divi it wouldn't be close to the share price performance so not sure what your beef is. You could have a nice 6 plus percent at a bank but your share are flat.

[PulpCutter]

Gold up US$500, but the cheerleaders figure it's awesome management that increased the share price.  LMAO Meanwhile management cashes in, led by Boyd divesting 2/3rds of his shares.

[robert41]

He has right to sell shares what's the problem? you can sell yours too if you own any which I doubt. I don't get ur complaints just weird.

[packerdriver]

SHEESH ! Some people are hard to please! Stock is hitting 3 year high after sucessfully digesting a big acquistion (that's a 50/50 chance of a good result in the gold biz!) The dividend might not be the Candian standard....but compares well with US companies. This company is trasitioning from being a "Canadian" gold miner to a major gold miner. If there was a vote, mine would be to

[lumpy13]

Stock is up 50% from its low in '24 and 20%+ since 1/1/24.  Yet, the problem is that AEM only pays a 2.34% dividend and it should be raised.  Comments like this indicate that PulpCutter should just invest in US treasuries, which earn 5% and have low risk.   Nothing wrong with that, just don't waste time complaining about AEM

[packerdriver]

Well said! I used to work with a guy named Lumpy and he made perfect sense like you do. Raising the dividend to 5%+ makes no sense when your product can go up and down like a yo-yo. Gold miners don't want/need yield seeking investors. They have a nasty habit of leaving en masse when the commodity price corrects...and nothing crashes an SP more than a necessary dividend cut. BAD IDEA ALL AROUND

[willyk3]

Stocks go up and stocks go down. A major hiccup in the price of bullion and your 50 per cent gain is down the tubes. In the old days many resource companies payed out special dividends when the money was rolling in. I liked that. Only the oil and gas outfits are warming up to that model but I wish that all resource companies would pay out something extra when windfall profits are the norm.