Peabody Energy (BTU) Declares $1.85 Supplemental Dividend

Peabody Energy (NYSE: BTU) declared a Supplemental dividend of $1.85 per share.

The dividend will be payable on March 20, 2019, to stockholders of record on March 12, 2019, with an ex-dividend date of March 11, 2019.

The annual yield on the dividend is 6.1 percent.

"Peabody's supplemental dividend demonstrates strong confidence in the company's substantial cash flow generating capability," said Peabody President and Chief Executive Officer Glenn Kellow. "Today, we deploy another tool in our capital allocation kit with a supplemental dividend that shows a flexibility of approach and underscores a sustained commitment to returning cash to shareholders."

In 2019, the company expects to allocate an amount equal to or greater than its free cash flow to shareholder returns. In 2018, Peabody deployed two-thirds of its free cash flow to share repurchases and dividends, and used the vast majority of remaining free cash flow for the highly attractive Shoal Creek Mine acquisition.

"Peabody has already returned more than $1.1 billion to shareholders through share repurchases and dividends over the past 18 months, yet Peabody's liquidity levels still remain well above our target," said Kellow. "We are pleased to be issuing this supplemental dividend, representing further significant, tangible contributions to shareholder returns, while we continue our active share buyback program and ongoing quarterly dividends."

The company also has approximately $415 million remaining under its current $1.5 billion authorization for share repurchases, and continues to implement buybacks as the company believes the shares are a compelling investment opportunity. Peabody's liquidity target remains $800 million and stood at $1.32 billion at Dec. 31, 2018. Gross debt remains targeted at $1.2 billion to $1.4 billion and stood at $1.37 billion at Dec. 31, 2018.

For a dividend history and other dividend-related data on Peabody Energy (BTU) click here.

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