According to the press-release of Ferrexpo, the leading producer and exporter of iron ore pellets in Ukraine, the company’s AGM has approved of a $3.3 cents final dividend. Earlier Ferrexpo’s Board of Directors has proposed a final dividend in respect of profits generated by the company in 2014 of $3.3 cents per ordinary share, payable on May 29, 2015 to shareholders of record as of May 1, 2015. The AGM also approved of the company’s financial report for 2014 and re-appointed Ernst & Young LLP as auditors.
Additionally the AGM has authorized the company to make market purchases of up to 58.8 million of Ferrexpo’s ordinary shares, which expires at the end of the next AGM or July 1, 2016 (whichever is earlier).
The fact that the company is continuing with its dividend policy even in a complex economic environment of 2014-2015 is a positive signal for equity investors. Considering the special dividend of $6.6 cents paid in March, the dividend yield comes to about 9%, while the implied dividend payout ratio (using the 2014 net income) is 32%. Ferrexpo has announced a buyback program, which should support the company’s share price. (https://empirestatecap.com/en/research/daily-commentator/235-ukraine-markets-daily-may-22,-2015.html/Ukrainian metal)