Glencore to Pay Dividend, More Miners to Follow

Glencore has announced plans to resume paying dividends in 2017, and investors should expect more miners to follow suit says IG Group

Karen Kwok 1 December, 2016 | 10:49AM
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Mining company Glencore has announced plans to resume paying dividends to shareholders with an expected $1 billion payout in 2017. And according to Chris Beauchamp from online trading platform IG Group, the firm will not be the last. He predicts miners’ dividends are poised to return in 2017, supported by an ongoing rally in commodities prices.

The commodities sector has suffered over the past five years. Major miners scrapped their dividends one after another because of concerns about their profits and cash flows.  However, a rally in commodities prices since February could lead to a dividend comeback among mining companies.

“I do not think the rally of the past eight months has come to an end just yet. Miners remain a good opportunity for 2017,” Beauchamp, said in a press roundtable in London this week.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Anglo American PLC2,838.00 GBX-0.05Rating
BHP Group PLC2,003.00 GBX-0.27Rating
BP PLC363.10 GBX0.32Rating
Glencore PLC377.95 GBX-0.72Rating
Goldman Sachs Group Inc407.89 USD-1.04Rating
Rio Tinto PLC4,885.50 GBX-3.26Rating
Royal Dutch Shell PLC B1,801.40 GBX0.14Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk