$HL may be a great play for Silver
Hecla Mining Co. (HL)
Share Price: $5.78
Dividend Yield: 1%
Market Cap: $1.69 billion
Payout Ratio: 52%
Beta: 1.65
Based out of Coeur d’Alene, Idaho, Hecla discovers, acquires, develops and produces silver, gold, lead and zinc mines. Founded in 1891, the company has two mines operating in Alaska and Idaho…and is the largest silver producer in the U.S.
In 2011 the company produced 9.5 million ounces at a cost of $1.15 per ounce. Stock movements are highly correlated to silver; when the price of silver is rising it creates more favorable margins for the company and pushes up Hecla’s stock price. When declining silver prices squeeze those margins, the share price typically declines as well.
Hecla has a two-part dividend policy. The company has a minimum annual dividend of $0.01 per common share, and also has a silver-linked dividend. The silver-linked dividend fluctuates as it’s related to the price that Hecla receives for its silver. In 2012, the total quarterly dividend ranged from $0.0025 to $0.0225, with the total dividend equalling $0.06 (annual), or a 1% dividend yield based on a $6 share price. While there is some variability in the dividend amount, rising silver prices are favorable for both dividend and capital gains investors.
Things to Remember
Dividend yields fluctuate as the dividend policy of the company changes, and as the stock price changes. Sharp changes in the stock price can make a dividend yield look artificially low or high. Check the company’s investor section on its website to stay up to date on any news announcements which may affect shareholders and dividend policy. The stock price of silver streamers and silver miners will typically move with the price of silver, so investors should keep an eye on the overall trend of both the stock and silver before jumping in.
Hecla Mining Co. (HL)
Share Price: $5.78
Dividend Yield: 1%
Market Cap: $1.69 billion
Payout Ratio: 52%
Beta: 1.65
Based out of Coeur d’Alene, Idaho, Hecla discovers, acquires, develops and produces silver, gold, lead and zinc mines. Founded in 1891, the company has two mines operating in Alaska and Idaho…and is the largest silver producer in the U.S.
In 2011 the company produced 9.5 million ounces at a cost of $1.15 per ounce. Stock movements are highly correlated to silver; when the price of silver is rising it creates more favorable margins for the company and pushes up Hecla’s stock price. When declining silver prices squeeze those margins, the share price typically declines as well.
Hecla has a two-part dividend policy. The company has a minimum annual dividend of $0.01 per common share, and also has a silver-linked dividend. The silver-linked dividend fluctuates as it’s related to the price that Hecla receives for its silver. In 2012, the total quarterly dividend ranged from $0.0025 to $0.0225, with the total dividend equalling $0.06 (annual), or a 1% dividend yield based on a $6 share price. While there is some variability in the dividend amount, rising silver prices are favorable for both dividend and capital gains investors.
Things to Remember
Dividend yields fluctuate as the dividend policy of the company changes, and as the stock price changes. Sharp changes in the stock price can make a dividend yield look artificially low or high. Check the company’s investor section on its website to stay up to date on any news announcements which may affect shareholders and dividend policy. The stock price of silver streamers and silver miners will typically move with the price of silver, so investors should keep an eye on the overall trend of both the stock and silver before jumping in.
