Brazilian miner and iron ore producer Vale has announced a new dividends policy, which has drawn market optimism, according to market analysts. Vale plans to pay dividends twice a year, with September and March payments, according to a document filing late last week.
Vale said the new policy will be effective from the announcement of its Q2 results. The dividends are based on 30 percent of the company’s adjusted EBITDA less Capex over the first half of the year.
Media reports citing market analysts said the new policy would create a “new Vale,” which should draw even more investors. “We believe the new policy demonstrates Vale’s commitment to generate value to shareholders and puts the company as the biggest dividends payer within our mining coverage range,” a Credit Suisse analyst said.