Anglo American Plc dropped to a new record low after scrapping its dividend for the first time since 2009 and pledging deeper spending cuts to help the mining company withstand a collapse in commodities. The company will suspend its payouts for the second half of this year and for 2016, it said in a statement Tuesday. Anglo is abandoning its practice of steadily increasing the dividend in favor of a system that allows the payment to rise and fall with the company’s profits, known as a dividend payout ratio. Chief Executive Officer Mark Cutifani is seeking to turn around the company’s fortunes in the face of metalprices at the lowest in about six years and China’s sluggish economic growth.
By the time Anglo suspended its dividend in 1998, the S&P Metals & Mining Index was down 50% from its monthly closing high. In 2008, it was down 67%. Currently, it is down 69%…These dividend suspensions are exactly what potential shareholders should be looking for as a signal that sentiment is nearing a trough.”
Related Posts
- 63We have the first quarter's gross domestic product figures for the United States and they're not looking good. On an annualised basis that growth was only 0.7%, well down from the 2.1% of the preceding quarter. And to be honest about this it just doesn't sound right. Or perhaps to…
- 60Venture capitalists say startups are taking on too much risk, and a shakeout is inevitable. But they’re not saying who will be shaken out. It wasn’t long ago that startups refused to reveal their valuations. It makes sense—valuations are paper money, after all. They’re based on the company’s ability to…
- 60(Source : http://qz.com/486476/everything-youve-heard-about-chinas-stock-market-crash-is-wrong/ ) This week’s Chinese stock market implosion has been widely viewed as a reaction to the Chinese government’s devaluing the yuan on Aug. 11—a move many presume was a frenzied bid to lower export prices and strengthen the economy. This interpretation doesn’t stand up to scrutiny. First, Chinese…
- 56The only thing we know for sure is that stock in Hanergy Thin Film Power, a solar panel company equipment owned by what was at the time China's richest man, fell 47 percent last Wednesday. We don't know exactly why it fell, or even how much its Chairman Li Hejun…