The Grange Resources Limited (ASX: GRR) share price is soaring on Friday after the iron ore pellet producer announced a supersized special dividend for shareholders.
At the time of writing, Grange Resources shares are swapping hands for 76 cents, up 24.59%.
Grange Resources rewards shareholders
The board’s decision to announce a special dividend has excited investors and prompted many to get in on the action today.
According to its release, Grange Resources will pay a special dividend of 10 cents per share to shareholders. This comes off the back of the company’s strong performance in 2021, thanks to record iron ore prices realised.
Previously, the board declared a final dividend of 2 cents in February and an interim dividend of 2 cents in August. However, after assessing the capital requirements of the company, the panel elected to reward Grange shareholders.
The special dividend marks a 150% increase on the 2021 calendar year dividend of 4 cents per share. It’s also worth noting that the dividend is fully-franked, which means that shareholders will receive tax credits.
ASX investors must be on the company’s register before the ex-dividend date of 15 December to receive the dividend. Shareholders will receive their payment on 29 December.
About the Grange Resources share price
Over the past 12 months, the Grange Resource share price has surged by 171%. Its year-to-date gains are about 153%.
The Grange Resources share price reached an all-time high of 91 cents in late July, followed by heavy falls in the months continuing. Since then, the share price has gradually recovered to where it is today.
Based on today’s price, Grange Resources commands a market capitalisation of $879.5 million. It has approximately 1.16 billion shares outstanding.
The post Grange Resources (ASX:GRR) share price soars 24% on supersized special dividend appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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