Teck doubles dividend with new adopted policy

VANCOUVER (miningweekly.com) – Diversified miner Teck Resources has adopted a new dividend policy doubling payouts to shareholders and allowing the board to consider a supplemental dividend annually, based on free cash flow, business conditions and capital priorities.

The Vancouver-based company said it will pay on June 30, an initial eligible dividend of C$0.10 per share on its outstanding Class A common shares and Class B subordinate voting shares, to shareholders of record at the close of business on June 15.

Teck stated that the new dividend policy will be anchored by an annual base dividend of C$0.20 a share, which will be declared and paid quarterly, starting in the third quarter, as C$0.05 dividends on the last business day of each quarter.

Any supplemental dividends declared would be paid on the last business day of the calendar year. If declared, supplemental dividends may be “highly variable”.

Teck advised that the new dividend policy reflects its commitment to return cash to shareholders in balance with the needs and opportunities to invest in, and the inherent cyclicality of, its underlying businesses.

Teck had in 2015 cut its semi-annual dividend twice as commodity markets collapsed, from C$0.45 to C$0.10 a share, and then to C$0.05 a share.

Teck’s TSX-listed stock fell more than 6% this week after it missed on its first-quarter earnings announced on Wednesday.