Goldcorp Inc. (GG) increased its monthly dividend for 2011 to $0.034 per share, an 11% increase over the prior dividend. The dividend is payable on March 25, 2011 to shareholders of record as of March 17, 2011. Goldcorp has been paying a monthly dividend to its shareholders since 2003.
The dividend increase was attributable to strong fourth-quarter 2010 earnings that the company announced in February. During the quarter, reported net earnings were $331.8 million compared with $66.7 million in the fourth quarter of 2009. Adjusted net earnings were $417.1 million, or 57 cents per share compared with $182.7 million or 25 cents per share in the fourth quarter of 2009. Results exceeded the Zacks Consensus Estimate of 49 cents.
The increase in results was driven by higher gold and silver prices and increased bullion production.
Net earnings in 2010 were a record $1.6 billion or $2.14 per share compared with $240.2 million or $0.33 per share in the prior year. Adjusted net earnings totaled $1.0 billion, or $1.37 per share compared with $588.2 million or 80 cents per share in 2009.
Goldcorp is one of the world’s fastest growing senior gold producers. Its low-cost gold production is 100% unhedged. The company faces stiff competition from AngloGold Ashanti Ltd. (AU), Barrick Gold Corporation (ABX) and Newmont Mining Corp. (NEM).
Goldcorp’s arch rival Agnico also announced a 256% increase in its quarterly dividend in December, when it announced that it would raise the quarterly payment to $0.16 a share, starting on March 15, 2011.
We maintain our Neutral recommendation on Goldcorp. Currently, it holds a Zacks #3 Rank (Hold) on the stock.
BARRICK GOLD CP (ABX): Free Stock Analysis Report
ANGLOGOLD LTD (AU): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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