Barrick, Randgold To Hike Dividend Payments
(Kitco News) - Barrick Gold Corp. (NYSE, TSX: ABX) and Randgold Resources Ltd. (Nasdaq: GOLD) are offering a Halloween goodie to shareholders – the companies Wednesday announced they are planning to increase dividend payments.
In late September, the companies announced an all-stock merger in which Barrick would acquire Randgold to create the largest gold-mining company in the world. The merger is subject to a number of items, including shareholder approval, with Barrick shareholders scheduled to vote Nov. 5 on whether to issue stock in conjunction with the merger.
Under the new dividend plan announced Wednesday, Randgold shareholders will be entitled to a dividend of $2.69 per share for the 2018 financial year, instead of the originally agreed-upon $2, which would have matched the 2017 dividend and was equal to the largest ever paid by Randgold. The increased dividend is expected to be declared and paid prior to closing of the merger, Barrick said.
Meanwhile, Barrick said, its shareholders will be entitled to a fourth-quarter dividend of 7 cents per share for an annualized 2018 dividend of 16 cents, instead of the originally planned fourth-quarter dividend of 5 cents. Further, Barrick said the company will target an ongoing annual dividend of 16 cents per share, which would be 4-cent increase from the company’s current annual dividend of 12 cents.