Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Arch Resources set to pay $1.13 dividend on December 15

EditorAmbhini Aishwarya
Published 11/24/2023, 06:23 AM
© Reuters.

Investors are anticipating a forthcoming dividend payment from Arch Resources, as the company prepares to distribute $1.13 per share on December 15. With an ex-dividend date of November 29, the coal mining firm has been drawing attention with its robust dividend yield, which is currently near 6.6% based on the stock price of $160.6.

The company's financial health appears to be solid, with a payout ratio of only 45% of profits and a free cash flow payout ratio at 84%. This suggests that Arch Resources has managed to balance returning income to shareholders while retaining enough capital to sustain or potentially increase future dividends.

Over the past five years, earnings per share for Arch Resources have seen an impressive average annual growth rate of 35%. This consistent performance underpins the potential for ongoing dividend growth, which has been a clear pattern for the company. Over the past six years, dividends have increased by an average of nearly 40% annually.

InvestingPro Insights

Investors seeking to understand the full picture of Arch Resources' financial standing will find the latest metrics from InvestingPro illuminating. With a market capitalization of $2.95 billion and an attractive P/E ratio of 3.54, reflecting a slight increase to 3.6 over the last twelve months as of Q3 2023, the company stands out in its valuation. The dividend yield of 6.64% is particularly compelling, especially when considering that Arch Resources has a track record of significant dividend growth, a staggering 878% over the last twelve months as of Q3 2023.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Two InvestingPro Tips that are particularly relevant to Arch Resources' dividend prospects include the company's high return on invested capital and its strong free cash flow yield. These indicators suggest that the company efficiently allocates capital to profitable investments and generates ample cash, which supports its generous dividend payments. Additionally, with a solid return on assets of 34.98%, the company demonstrates its ability to turn assets into profits effectively.

For those interested in a deeper dive into Arch Resources' financial performance and future prospects, InvestingPro offers additional insights. Subscribers can access a wealth of tips, with 17 more listed for Arch Resources, providing a comprehensive analysis for informed investment decisions. And with the special Black Friday sale, now is an opportune time to subscribe to InvestingPro with discounts of up to 55%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.