- Warrior Met Coal suspended their special dividends two years ago and disappointingly, the language from management indicates that this is likely to be repeated in 2022.
- The biggest issue stems from a strike that has significantly hindered their production, which remains unresolved.
- Thankfully, their cash flow performance still started recovering during 2021, thanks to strong selling prices.
- Since they have now hit zero leverage, their capacity to fund special dividends is alike to a coiled spring once their strike ends.
- Shareholders could see a massive 20%+ dividend yield if they wait another year and thus I believe that upgrading to a buy rating is appropriate.
For further details see:
Warrior Met Coal: Buy Now And Receive A Potential 10% - 20%+ Refund