Did you ever use to watch Saved by the Bell? Remember the time Bayside High was sitting on a literal gold mine—well, an oil mine—and the big corporate suits thought they could just walk in and push everyone around?
Initially, everyone was distracted by the hype. But when things got real, Zack Morris stepped up. He didn’t just scheme; he led the charge. He stood up in that auditorium, looked the “Big Oil” execs in the eye, and proved that Bayside wasn’t just a payday—it was a powerhouse that deserved respect.
Which brings us to Kinross Gold (TSX: K), who right now is having its Zack Morris moment.
As a major gold producer, what do you do when the market significantly undervalues you relative to peers? Do you just stand back and let it happen? Or do you look those fancy analysts in the eye, show some onions, and jack up shareholder returns.
That’s exactly what Kinross just did.
The major producer has raised their dividend yet again, marking the second consecutive quarter in which they’ve expanded returns to investors. As a result, Kinross has increased their dividend by 33% over just the last five months. For a bit of perspective: Newmont raised theirs by only 4%… over the last two years.
But that’s not all. Moving forward, Kinross has committed to delivering 40% of free cash flow back to shareholders through a mix of dividends and buybacks*.
“We have a baseline dividend, which is meant to be there forever. And the bulk of the return of capital really comes in the form of buyback. We like the buyback. We think a lot of our investors prefer the buyback. And one of the things we like about buyback is it does come with that benefit of reducing our share count and therefore improving our per share metric,” commented J Rollinson, CEO & Director.
Which using 2025’s free cash flow of $2.5 billion, would work out to roughly $900 million being returned to shareholders this year. But gold prices are continuing to climb, so that number is probably low.
As it stands, the increase is a nearly 20% bump year-over-year—and a heck of an opening to their 2025 financial results.
The kind of performance even Belding couldn’t get in the way of.
Let’s dive in.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
