Revealed on July seventeenth, 2025 by Aristofanis Papadatos
Dynacor Group (DNGDF) has two interesting funding traits:
#1: It’s providing an above-average dividend yield of three.6%, which is triple the common dividend yield of the S&P 500.
#2: It pays dividends month-to-month as an alternative of quarterly.
Associated: Listing of month-to-month dividend shares
You possibly can obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yields and payout ratios) by clicking on the hyperlink beneath:
The mixture of an above-average dividend yield and a month-to-month dividend makes Dynacor a gorgeous possibility for particular person buyers.
However there’s extra to the corporate than simply these elements. Hold studying this text to be taught extra about Dynacor.
Enterprise Overview
Dynacor is an industrial gold processor with core operations in Peru, the place it purchases ore from artisanal and small-scale miners and processes it at its wholly owned Veta Dorada plant in Chala.
The power has a nameplate capability of 430 tons per day and is optimized for steady, high-efficiency throughput. The corporate was based in 1996 and is headquartered in Montreal, Canada.
The enterprise mannequin of Dynacor is exclusive in that it doesn’t interact in exploration or mining; as an alternative the corporate operates an in depth ore-purchasing community throughout Peru to supply high-grade feedstock.
Dynacor operates a powerful logistics community for amassing ore, runs its personal labs for evaluation, and handles gold exports with safe, dependable methods. Dynacor additionally reinvests in increasing its provide community and enhancing plant capability, whereas sustaining a lean price construction and constant manufacturing circulate.
Dynacor has drastically benefited from the extremely inflationary surroundings that has prevailed since 2022. The unprecedented fiscal stimulus packages supplied by most governments through the coronavirus disaster led to a surge of inflation to a 40-year excessive in 2022.
Throughout inflationary durations, buyers rush to purchase gold, as the valuable steel has all the time supplied nice safety towards inflation. In consequence, the value of gold has almost doubled, from roughly $1,700 in early 2022 to an all-time excessive of $3,330 proper now.
The rally of the value of gold has been clearly mirrored within the enterprise outcomes of Dynacor. The corporate almost tripled its earnings per share, from $0.11 in 2020 to $0.30 in 2021 and posted all-time excessive earnings per share of $0.46 final yr.
Within the first quarter of this yr, Dynacor grew its income 18% over the prior yr’s quarter, to a brand new all-time excessive of $80.0 million, regardless of a 15% decline in gold gross sales volumes on account of decrease ore grades. The typical promoting value of gold surged 39%, from $2,075 per ounce to $2,878 per ounce, thus simply offsetting the impact of decrease volumes.
Working margin shrank from 13.5% to 11.2% on account of elevated promoting and administrative bills and earnings per share remained flat at $0.13. For the complete yr, we anticipate earnings per share of roughly $0.40.
Progress Prospects
The efficiency of Dynacor over the previous decade displays a slow-building however in the end sharp enchancment in profitability, underpinned by operational self-discipline, plant optimization, and favorable gold market circumstances.
From 2015 to 2019, earnings per share rose incrementally from $0.09 to $0.13, reflecting gradual however regular progress as the corporate ramped up the throughput at its Veta Dorada plant and expanded its ore buying community in Peru.
These years noticed operational self-discipline, however earnings progress was restricted by average gold costs and the early-stage scale of the enterprise. Nevertheless, as talked about above, progress of earnings per share has drastically accelerated in the previous couple of years.
Additionally it is essential to notice that the corporate has constantly grown its manufacturing over the past decade.
Supply: Reality Sheet
Extra exactly, Dynacor has grown its manufacturing by 6.1% per yr on common over the past decade.
We anticipate the corporate to proceed rising its output considerably over the subsequent 5 years. As we additionally anticipate robust gold costs to stay in place for the foreseeable future, we anticipate Dynacor to develop its earnings per share at an 8% common annual fee over the subsequent 5 years.
Due to its blowout earnings lately, Dynacor has a rock-solid steadiness sheet. To make certain, it is without doubt one of the only a few corporations that doesn’t pay any curiosity expense, as its curiosity earnings exceeds its curiosity expense. Furthermore, the corporate doesn’t have any debt; as an alternative it has a internet money place of $57 million.
As the web money place is 40% of the market capitalization of the inventory, it’s actually extreme. Total, the rock-solid monetary place of Dynacor is a testomony to the energy of its enterprise mannequin.
Dividend & Valuation Evaluation
Dynacor is at present providing an above-average dividend yield of three.6%, which is triple the 1.2% yield of the S&P 500. The inventory is an fascinating candidate for earnings buyers, however they need to bear in mind that the dividend shouldn’t be completely secure as a result of cycles of the value of gold.
Dynacor has an inexpensive payout ratio of 39%, which gives a good margin of security for the dividend. Furthermore, because of the promising progress prospects and the pristine steadiness sheet of the corporate, its dividend must be thought-about secure within the absence of a significant downturn.
In reference to the valuation, Dynacor is at present buying and selling for 8.3 occasions its anticipated earnings per share this yr. We assume a good price-to-earnings ratio of 11.0 for this inventory.
Due to this fact, the present earnings a number of is decrease than our assumed truthful price-to-earnings ratio. If the inventory trades at its truthful valuation stage in 5 years, it should get pleasure from a 5.9% annualized acquire in its returns.
Considering 8% anticipated progress of earnings per share over the subsequent 5 years, the three.6% present dividend yield and a 5.9% annualized tailwind of valuation stage, Dynacor might provide a 16.9% common annual whole return over the subsequent 5 years. The anticipated whole return signifies that the inventory is very engaging proper now.
Last Ideas
Dynacor has promising progress prospects because of manufacturing progress and doubtlessly larger gold costs within the upcoming years. The inventory is providing an above-average dividend yield of three.6% and it seems cheaply valued. In consequence, it seems engaging proper now.
However, the corporate has confirmed extremely susceptible to the cycles of the value of gold. In consequence, it’s appropriate just for affected person buyers, who can endure excessive inventory value volatility .
Extra Studying
Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.
And see the assets beneath for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to help@suredividend.com.
