ARCH - Arch Resources: King Coal Back With A Potentially Massive 20%+ Yield
- Arch Resources benefits immensely from the current global energy shortage.
- This saw their operating cash flow during the first quarter of 2022 already surpass the entirety of 2021.
- As a result of their variable dividend policy, they have declared a record large dividend that few investors would have ever thought possible even one year ago.
- Whilst this could potentially see a massive 20%+ dividend yield during 2022, they are reliant upon thermal coal, which still faces a secular decline in the long-term.
- Since their ability to fund dividends outside of these booming operating conditions is limited, I only believe that a hold rating is appropriate.
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Arch Resources: King Coal Back With A Potentially Massive 20%+ Yield