What matters to the value investor?
Hager natural resources have valued the investors. We care most about dividend-steady yields without risk. With pools of capital coming from pension funds, endowments, sovereign wealth funds, insurance funds, etc., the providers of this capital primarily aim to maintain the value of the funds and stay ahead of inflation despite an international recession on a sky rise. This is a significant risk/reward equation to manage, and as a result, our value investors are geared to seek minimal volatility and steady returns. Understanding the investor’s objectives should allow companies to better focus on two primary goals:
1. Reshape the business to ensure earnings through Free Cash Flow (FCF) and Return on Capital Employed (ROCE), even during low oil price conditions.
Our sector needs to find ways to consistently generate free cash flow and find a reasonable price tag, the most recent low point in the cycle. This will enable our company to deliver the type of results which analysts believe are required to attract value investors.
2. Offering dividend yields of at least 5%.
Our survey found that analysts believe dividend yields around 4.9% could attract investors. This would be a big leap for the sector, whose yields have averaged approximately 2.5%.
How do we attract value investors?
Normally our team of experts do vast research on the international markets and observe the daily trends in the rise and fall of equity markets. The Boomerang and New York Stock Exchange (NYSE) helps us diversify our attraction of mining to outside partners around the globe. We reshape our strategy to increase dividends in all market cycles.