Pan American Silver (NASDAQ:PAAS) is increasing its quarterly dividend by 150%. "This is the fourth and most significant dividend increase we have delivered since announcing our first cash dividend in February 2010," CEO Geoff Burns is quoted by the company as saying.
The company is to pay $0.125 per share of its common stock on or about March 18 to shareholders of record as of March 4. That amount is 150% higher than the firm's previous dividend of $0.05, which it paid in the preceding two quarters. Prior to that, the company handed out $0.0375 per share.
"At the current silver price, we again expect to generate solid net cash flow in 2013, and have more than the necessary cash reserves to fund organic growth opportunities at our La Colorada and Dolores mines," Burns was quoted as saying. "In addition, we are equally able to invest in ongoing capital projects to increase the productivity of our mining operations, fund our exploration programs and to continue to repurchase shares ... "
The company's new payout annualizes to $0.50, giving its stock a yield of 3% at the current price of $16.56.
Earlier this week, Pan American Silver announced it had increased its probable and proven silver mineral reserves to a total of 317 million ounces as of Dec. 31, 2012, a 35% increase over 2011's mark.