Prediction: Iamgold Will Start Paying a Dividend Before the End of 2027. Here's Why That Would Change Everything.
Iamgold is buying back stock and has reduced its debt. A dividend might be next.
Overview
Iamgold (NYSE: IAG) is a mid-tier gold mining company that is on the path to becoming a senior major. It's a highly profitable commercial producer with gold mines in Ontario, Quebec, and Burkina Faso. The reason it remains a mid-tier company, not yet in the ranks of senior mining companies such as Newmont (NYSE: NEM) or Barrick Gold (NYSE: B), is that it isn't producing millions of ounces of gold per year.
However, it clearly is getting there. It has said it expects to produce 720,000 to 820,000 ounces of gold this year. It has also paid down its debt substantially. The company will have to do one other thing to be truly considered a major miner -- deliver a dividend. I believe it is on track to do that before the end of next year. Here's why.
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Originally published at www.fool.com.