Goldcorp Cuts Their Dividend 67% And Alters Payment Schedule

Goldcorp dividend cut

On February 25th, Goldcorp Inc cut their annual dividend by 66.67% from $0.24 USD to $0.08 USD, and changed the payment schedule from monthly to quarterly. They also announced the development of a Dividend Reinvestment Plan (“DRIP”) for the stock, which would allow investors to reinvest their distributions without commission fees and at a 3% discount to market price at the time of payment. Due to the dividend cut and their Q4 2015 earnings release and updated 2016 guidance, shares of Goldcorp tumbled -13.05% the trading day following the announcements.

 

Goldcorp logo

 

Considering the Dividend Beginner Portfolio holds 65 shares of Goldcorp Inc., my annual dividend income from G has dropped from $15.60 USD to $5.2 USD. The dividend reduction has decreased my 12-month forward dividend income from $1,441.50 to $1,431.10, a decrease of 0.72%. I do not take currency exchange rates into consideration in my annual dividend income calculations. 

Before G div. cut Net Increase After G div.cut
Annual Dividend Income $1,441.50 -$10.40 $1,431.10
Monthly Dividend Income $120.13 -$0.87 $119.26
Percentage Increase -0.72%

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