AuRico Gold (NYSE:AUQ) has announced it will start paying out a portion of its earnings in the form of shareholder dividends. For 2013, the company will disburse an annual dividend of $0.16, payable quarterly. Following that, the company aims to distribute 20% of each quarter's operating cash flow, to be calculated at the time the relevant payout is approved.
AuRico Gold plans to declare the first of those dividends on March 25. That $0.16 annual rate yields 2.5% on the company's current share price of $6.51. Its stock closed up $0.30, or 5%, following the news of the dividend introduction.
Fool contributor Eric Volkman has no position in AuRico Gold. The Motley Fool has no position in AuRico Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Shares of AuRico Gold Inc Popped Today
It's always nice to receive some love from analysts from time to time.
Why Endeavour Silver, AuRico Gold, and Fred's Soared Today
The stock market plunged after news of a Malaysian airliner crashing in Ukraine, but these stocks still managed to post solid gains on the day. Find out more about what made them soar.
Fool's Gold Report: Metals Soar as Gold Climbs to Highest Levels in 2014
A falling stock market helped lift precious metals higher, with platinum once again leading the way higher. Find out why bullion climbed today.