When the next divident is announced in January and the "market" ,which as we all know is oh so clever, sees the dividend cut by 80% ( or whatever huge amount) will there be a lemming like exodus and concomitant plunge in share price? I suspect so. It doesn't take too many dividiots panicking to cause a 10% drop in price. GLL
To Tony, It did drop by the $2.75 on x-div day and more in the next few days, but now it's on it's way back up, but still not up to the $38.50 it was before x-div. Give it time and it should eventually make up the div amount.
With eanings projected at about $2.50 for this year and next and a normal payout ration of 70% the dividend on an annual basis would be $1.75 or 4.9% at current price. This is too low for not much short term growth. I think I would be interested in this stock around $25.00 for a 7.4% yield Things can change and the price of coper could go up but this is my current thinking.