Don't Race Out To Buy Aura Minerals Inc. (TSE:ORA) Just Because It's Going Ex-Dividend
Aura Minerals Inc.'s upcoming ex-dividend date prompts investors to make a swift decision, as they must purchase shares before the record date to receive the dividend payment on March 14th. The company's trailing yield of 3.8% and recent payout ratio of 102% may indicate financial strain, raising concerns about its ability to sustain the dividend. However, Aura Minerals' dividend history shows a total distribution of US$0.70 per share last year, indicating a substantial payout.
- Investors seeking long-term growth through dividend payments should carefully consider the sustainability of such yields, particularly for companies with declining earnings and high payout ratios.
- Can Aura Minerals Inc.'s management team successfully address its financial challenges and maintain the dividend despite projected continued losses?