The board of Lundin Mining Corporation (TSE:LUN) has announced that it will pay a dividend of $0.09 per share on the 11th of September. Based on this payment, the dividend yield will be 2.6%, which is fairly typical for the industry.
View our latest analysis for Lundin Mining
Lundin Mining’s Earnings Easily Cover The Distributions
Unless the payments are sustainable, the dividend yield doesn’t mean too much. Prior to this announcement, the company was paying out 121% of what it was earning, however the dividend was quite comfortably covered by free cash flows at a cash payout ratio of only 57%. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend.
Analysts expect a massive rise in earnings per share in the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 62%, which would make us comfortable with the dividend’s…
