Will the increased dividend commitment affect the company's leverage or debt repayment plans?

The 80 % payout policy ties a large share of earnings to cash‑outflows, which will inevitably curb the amount of free cash the balance sheet can retain for debt‑reduction. With Q2 2025 net income at US $312 million, an 80 % dividend would consume roughly US $250 million of that profit, leaving only about US $60 million of net income (plus any non‑operating cash generation) to service existing borrowings or fund new cap‑ex. Consequently, the company’s leverage is likely to rise modestly unless it can offset the dividend drain with strong operating cash flow, asset‑sales, or a refinancing of existing debt at lower rates. In the short term, analysts will watch the cash‑flow statement closely; a widening net‑interest‑expense line or a stalled debt‑repayment schedule would signal a shift toward a higher leverage profile.

From a market‑technical perspective, the dividend announcement should buoy the stock on the upside—high‑yield investors tend to bid up the price, especially in a low‑rate environment—yet the reduced flexibility for debt‑paydown may introduce a “price‑floor” risk if credit spreads widen or the company’s credit rating is downgraded. Traders can consider a long‑position with a modest stop just below the recent support at $45 (if the stock is trading near that level) to capture the dividend‑driven rally, while keeping an eye on any sell‑off on the release of the next cash‑flow statement if leverage concerns materialise. In short, the dividend commitment will likely increase leverage pressure and could delay aggressive debt repayment, so the trade‑bias is bullish on the dividend capture but defensive on the credit‑risk side.