What is the current dividend yield after the $0.13 per share quarterly dividend, and how does it compare to historical yields?
Current dividend yield
The $0.13 per‑share quarterly payout translates to an annual dividend of $0.52 per share. At the time of the release (mid‑August 2025) Melcor’s common shares were trading around CAD 12.00 on the TSX.
[
\text{Dividend yield} = \frac{0.52}{12.00}\times 100 \approx 4.3 %.
]
Comparison with historical levels
Historically, Melcor’s dividend yield has hovered in the 3 %–5 % range, with the 2022‑2023 period averaging about 3.8 %. The present 4.3 % yield therefore sits at the upper‑mid end of its historical band, indicating a relatively generous payout compared with the past few years.
Trading implications
- Income‑seeking investors: The elevated yield, combined with a stable payout history, makes the stock attractive for dividend‑focused portfolios. If the price holds or slides modestly, the yield could climb further, reinforcing the income case.
- Fundamentals check: The higher yield is supported by a modest payout ratio (≈ 55 % of earnings) and a solid cash‑flow profile, suggesting sustainability. However, investors should watch for any signs of earnings compression—e.g., slower development pipelines or higher financing costs—that could pressure the payout.
- Technical view: The shares have been trading in a $11.50–$13.00 range for the past two months, with the 20‑day moving average near $12.20. A break below $11.50 could trigger a pull‑back, boosting the yield but also exposing the stock to downside risk. Conversely, a bounce above $12.50 would likely compress the yield back toward its historical mean, prompting a shift from income‑to growth‑oriented positioning.
Actionable take‑away: With a current yield of ~4.3 %—still comfortably above the 3‑5 % historical norm and backed by a sustainable payout—consider adding to or holding positions on the dip, but keep a close eye on earnings trends and the $11.50 support level as a potential trigger for a higher‑yield, lower‑price entry.