Labrador Iron (TSX:LIF): A High-Dividend Yielding Midcap Metal Stock

January 24, 2021 12:38 AM EST | By Kunal Sawhney
Follow us on Google News:


  • The Toronto-based metal company’s stock has soared 64 per cent in one year, led by the robust iron ore prices.
  • Labrador Iron Ore’s current dividend yield is almost 22 per cent.
  • The metal company reported debt-free earnings in the third quarter of 2020.

Iron and steel companies have been doing well on the back of robust prices of iron ore in the past few months. Iron ore price has zoomed nearly 80 per cent in one year.

As the metal price rallied, Toronto Stock Exchange (TSX)-listed Labrador Iron Ore stock emerged as an investors’ favourite in recent times. The Canadian basic material stock has advanced over 64 per cent in a year and offers double-digit dividend yield.

Without wasting any more time, let us look at this metal stock’s market fundamentals:


Labrador Iron Ore Royalty Corporation (TSX: LIF)

The Canadian corporation with a market cap of C$ 2.096 billion invests in the equity of Iron Ore Company of Canada (IOC), from which it generates revenues. IOC produced 4.2 million tonnes of iron ore in the third quarter of 2020.

Labrador distributes a quarterly dividend of C$ 1.8 per share, a 640 per cent rise, as compared to C$ 0.25 per stock dividend in the previous quarter. Its current dividend yield is 21.978 per cent, as per data on the TMX site. Its five-year average dividend growth stands at 7.65 per cent.

The shares hold a 34.41 per cent return on equity, with a price-to-earnings ratio of 10.70, TMX data adds. The iron stock offers 25.92 per cent return on assets and a price-to-cashflow of 15.50.

The mid cap metal scrips deliver earnings per share of C$ 3.13.

Image Source: Kalkine Group @2020

In the third quarter of 2020, Labrador Iron posted revenue of C$ 52.4 million, a surge of 15 per cent year-over-year (YoY) from C$ 45.5 million for Q3 of 2019. The company generated a net income of C$ 57.7 million for the third quarter of 2020, as against C$ 57.5 for Q3 in 2019. It reported a debt-free balance sheet and working capital of US$ 29.8 million as of September 30, 2020.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK