After losing cash for two years, and cutting its dividend in 2015, Anglo American surprised shareholders this morning. Management had told shareholders it would try to reinstate the dividend at the end of 2017, but thanks to surging profits, the board of directors was able to pay out a dividend for the first half instead. This is a sign of confidence from one of the world’s largest miners. Scott Patterson reports:
In a surprise move, Anglo American reinstated its dividend for the first half after having suspended payouts in 2015. The company had previously said it planned to deliver dividends at the end of 2017.
The results are a good sign for other mining behemoths that will be reporting earnings next month, including Rio Tinto PLC, Glencore PLC and BHP Ltd.
Shares of Anglo, which have gained more than 50% in the past 12 months, rose 2.9% in London trading.
The resumption of the dividend is “the big news” at Anglo, Sanford C. Bernstein analyst Paul Gait wrote in a note. The move “should be taken very positively by investors.”
Read more here.
