On the back of record third quarter profits, Yamana Gold Inc. bumped its quarterly dividend to 3 cents per share (U.S.), or 12 cents annually. That may not sound like much, but gold producers have always had extremely low payouts, and Yamana's hike is a 50 per cent rise over the last dividend rate of 2 cents per share.
Yet that level was instituted only last quarter, again on the heels of strong profits. That means in two quarters Yamana's dividend has gone up 200 per cent. The dividend yield is now 1.1 per cent.
Yamana's first dividend, 1 cent a quarter, was first paid in 2006. The rate stayed the same until 2010.
Late Wednesday Yamana posted a $121-million (Canadian) third quarter profit, 98 per cent higher than the same period in 2009