Upcoming dividends for Deterra (DRR)
Hi MM, What dividends do you expect DRR to pay - both in August and also into 2025? Do you see value in the stock at current levels? Thanks, Peter
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Answer
Hi Peter,
As we said earlier this month we didn’t like DRR‘s proposed A$276m (£144m) all cash offer to acquire Trident Royalties plc (TRR LN) for 49p (22.5% premium to prior close) and the subsequent share price decline has followed our thoughts.
- DRR is not going to be the cash cow for some years that it was but we do see value on the stock into current weakness under $4.
- DRR has reduced the 100% of earnings dividend policy to a minimum 50% (from FY25 onwards) subject to balance sheet and anticipated investment requirements.
- This reduces DRR’s dividend yield from around 8% to the 4% region over the coming years.
- We are looking for DRR to pay a divided end of 31c in 2024 followed by 15-16c in the subsequent two years.
