Vale (NYSE:VALE) proposes cutting dividends even more than planned, looking to pay $500M for the second tranche of its 2015 dividend, half the $1B it proposed in January.The company says the reduction in the second dividend installment to ~$0.10/share (as of Aug. 31) reflects “the more uncertain scenario for mineral commodities prices and the focus on managing the balance sheet”.
Vale’s board of directors is set to review the proposal at an Oct. 15 meeting, and payment would take place on Oct. 30.
Credit Suisse expects lower metal prices will lead Vale to cancel next year’s dividend altogether.
Leave a Reply