Vale S.A. Announces Special Dividend of $0.31 (NYSE:VALE)

Key Points

• Vale declared a special dividend of $0.3088 per share, payable September 10 to shareholders of record on August 13; the ex-dividend date is also August 13.
• The dividend appears well covered, with a 24.9% payout ratio and analysts expecting a lower 21.0% future payout ratio based on projected earnings.
• Vale’s latest quarterly results fell short of expectations, reporting $0.36 in EPS versus the $0.46 consensus and revenue of $10.24 billion versus $10.47 billion expected.

Vale S.A. (NYSE:VALE - Get Free Report) declared a special dividend on Friday, July 31st. Shareholders of record on Thursday, August 13th will be paid a dividend of 0.3088 per share by the basic materials company on Thursday, September 10th. The ex-dividend date is Thursday, August 13th.

Vale has raised its dividend by an average of 0.3%per year over the last three years. Vale has a dividend payout ratio of 24.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Vale to earn $2.10 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 21.0%.

Vale Trading Up 1.1%

VALE opened at $14.87 on Tuesday. The stock has a market cap of $67.50 billion, a price-to-earnings ratio of 30.35 and a beta of 0.47. The stock's 50 day moving average price is $14.99 and its 200-day moving average price is $15.85. Vale has a one year low of $9.67 and a one year high of $17.94. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.77 and a current ratio of 1.19.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.10). Vale had a return on equity of 19.87% and a net margin of 5.11%.The business had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $10.47 billion. On average, equities analysts forecast that Vale will post 1.9 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. N.E.W. Advisory Services LLC purchased a new stake in shares of Vale in the 4th quarter worth approximately $26,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna raised its stake in Vale by 128.3% in the fourth quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company's stock worth $27,000 after buying an additional 1,155 shares in the last quarter. Bruce G. Allen Investments LLC bought a new position in Vale in the fourth quarter worth approximately $33,000. Cornerstone Planning Group LLC raised its stake in Vale by 15,360.0% in the fourth quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company's stock worth $40,000 after buying an additional 3,072 shares in the last quarter. Finally, Triumph Capital Management purchased a new stake in Vale during the third quarter worth $34,000. Hedge funds and other institutional investors own 21.85% of the company's stock.

About Vale

Vale SA is a Brazilian multinational mining company and one of the world's largest producers of iron ore and iron ore pellets. In addition to iron ore, the company produces and sells a range of bulk commodities and metals, including nickel, copper, coal, manganese, ferroalloys and cobalt, and it participates in the fertilizer inputs market. Vale also operates extensive logistics assets — including rail, port and maritime logistics — that support its mining and export activities and provide services to third parties in some regions.

Headquartered in Brazil, Vale maintains a global operational footprint with mining, processing and shipping activities across the Americas, Africa, Asia and Oceania.

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