Six analysts have increased their earnings estimates for this ore and nickel producer in the past 30 days. The shares have a current annual yield of 4.71%, paid semi-annually.
Vale S.A. (VALE)
From AlphaProfit Sector Investors’ Newsletter
Vale is putting its January 2019 dam breach troubles behind. The disaster cost 270 lives, forcing Vale to incur huge expenses & charges. The Brazil-based iron ore and nickel producer also suspended its dividend and share buybacks.
Vale expects free cash flow to increase substantially in the second half of 2020 from the first as it ramps up iron ore production. The company expects to resume dividend payments after repaying $5 billion drawn on its revolver. Vale shares appeal to intrepid, turnaround investors. They trade at 5.4X-forward EPS versus prospects for EPS to more than triple in the next 12 months.
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, alphaprofit.com, 281-565-6963, August 2020