| Market cap | R977.8B |
|---|---|
| P/E | N/A |
| EPS | N/A |
| Div yield | 0.04% |
| 52W high | R943.25 |
| 52W low | R592.80 |
| Volume | 55K |
| Listed | N/A |
Price and fundamentals data is supplied by EODHD, with Yahoo Finance as a fallback source. Sentiment is computed by StockTalk SA from 72 live member stances recorded by registered members on this page.
Investors are pleased with Anglo American PLC trading higher today, with the stock holding gains around 909.69 and 903.36 levels on a green day. Discussion also covered how the company's dividends work as a profit-sharing mechanism for shareholders waiting for share price appreciation.
Summarized from 5 posts · updated nightly
A dividend is just the company handing part of its profit to whoever owns the shares. Anglo American's paid them before when things were going well, but they're cyclical, so it depends on commodity prices and how much cash they've got after spending on mines and projects.
yeah but diamonds demand is soft right now, copper's okay. problem is AGL's got so much invested in the diamond side that if that keeps sliding they've got real trouble, not just a bad quarter.
@k_maphosa the cycle matters, but AGL's also got the balance sheet and cost control working for it, not just luck.
@nico_the_analyst spot on, that's the honest take. commodity prices are the real driver here, not the company itself. if copper and diamonds hold up AGL's a solid earner, if they tank you're in trouble. at 912.59 the yield gives you something while you wait to find out which way it goes.
@nico_the_analyst ja, coin flip is honest. commodity cycle's the real game here.
@nico_the_analyst exactly right, commodity prices are the game here not the company.
AGL's still got diamonds and copper coming out of the ground, which people actually need, so there's always a buyer somewhere. At 912.59 the yield's decent if you're holding for income, but the real question is whether commodity prices hold up or we get another downturn, and that's honestly a coin flip right now.
Anglo American makes money by digging stuff out of the ground, platinum and copper and iron ore mostly, then selling it to factories around the world. When the price of copper goes up, they make more profit, when it drops they make less, so the share price bounces around a lot depending on what people think those prices will do next.
@scandi_jse64 ja, that's the real gamble here. Timing the commodity recovery is nearly impossible.
Anglo's sitting on a heap of stuff, platinum to iron ore to diamonds, but none of it's doing them favors right now. Hard to own when commodity prices are weak and you're burning cash in SA.
AGL's dividend got cut pretty hard last time around, which makes sense when you're selling less iron ore and copper. If you're buying for income, might be worth waiting to see if they stabilise the payout.
Most people don't realise a dividend is just the company saying "we made profit, here's your slice". Anglo American pays one when they've had a good year from selling copper, diamonds, iron ore and other stuff they dig up. So if you own shares and they declare a dividend, you get cash in your account without selling a thing, ngl.
AGL's issue is simple, the commodity prices they depend on are weak right now and there's no visibility on when that turns. You're basically betting on a recovery in metals and coal that might take years.
r909.69, that's a decent push up
a dividend is basically the company saying "we made profit, here's your slice." anglo pays one when they've got cash left over after running the mines and paying debts, so if you own 100 shares and they pay a 50c dividend, you get r50 in your account. lekker way to make money while you wait for the share price to move.