Kinross Gold Corporation (TSE:K) Ex-Dividend Date and 1.5% Yield

Readers looking to invest in Kinross Gold Corporation (TSE:K) for its dividend should act promptly, as the stock is set to trade ex-dividend soon. The ex-dividend date is one day before the record date, which is crucial for shareholders to be on the company’s books to receive the dividend. Missing the ex-dividend date would result in not being listed on the company’s records on the record date. Therefore, purchasing Kinross Gold’s shares before May 30th is necessary to receive the dividend payout scheduled for June 13th.

The upcoming dividend for the company amounts to US$0.03 per share, continuing from the total of US$0.12 per share distributed to shareholders in the last 12 months. Assessing the previous year’s payments reveals that Kinross Gold offers a trailing yield of 1.5% based on the current share price of CA$11.04. While dividends are appealing, it’s crucial to ensure that the company’s financial health allows for sustainable payouts.

For a more in-depth analysis of Kinross Gold, click here.

Assessing Dividend Sustainability

A company paying out more in dividends than it earned could indicate an unsustainable dividend policy. Kinross Gold managed to distribute 34% of its profits comfortably last year, but cash flows are even more critical for evaluating dividend sustainability. The company paid out only 30% of its free cash flow in the past year, indicating a balanced approach towards dividends.

Analyzing the dividend coverage by both profits and cash flow is crucial as it signifies the sustainability of the dividend payout. A lower payout ratio provides a safety buffer before potential dividend cuts.

Evaluating Earnings and Dividend Growth

Declining earnings pose challenges for a company’s dividend sustainability. Investors closely monitor dividend payments, and reductions in earnings could lead to significant sell-offs if dividends are compromised. Kinross Gold showed a 16% annual decline in earnings over the past five years, impacting the potential dividend payout.

Historical dividend growth rates provide insights into a company’s dividend prospects. Kinross Gold witnessed a 2.8% annual decline in dividends over the past decade, indicating a concerning trend. While declining earnings and dividends are not favorable, management’s decision to cut dividends rather than risking the company’s health is a cautious approach.

Final Considerations

Is Kinross Gold equipped to sustain its dividend payments amidst declining earnings? Despite a notable decrease in earnings per share, the company maintains a conservative payout percentage of both earnings and cash flow. Although declining earnings are concerning, there may be some resilience before potential dividend adjustments are made. Overall, the outlook for Kinross Gold’s dividends does not spark significant enthusiasm.

While the allure of investing in Kinross Gold for dividends is apparent, it is essential to acknowledge associated risks. Identifying warning signs, including those specific to Kinross Gold, is crucial in the investment evaluation process.

It’s advisable not to hastily invest in the first dividend stock encountered. Consider exploring a curated list of diversified stocks with strong dividend payment histories for a more comprehensive investment approach.

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This article by Simply Wall St offers general insights based on historical data and analyst forecasts, using an unbiased methodology. It does not serve as financial advice, and individual objectives and financial situations should be considered. The analysis aims to provide a long-term perspective driven by fundamental data and may not reflect the latest company announcements or qualitative factors. Simply Wall St holds no position in mentioned stocks.