The Rising Influence of Rising Affluence

[DewDiligence]

VALE announced a gross dividend of $0.575/sh payable 8/26/11 (http://www.sec.gov/Archives/edgar/data/917851/000095012311069781/c20602e6vk.htm ); the ex-dividend date is 8/12/11.

VALE paid gross dividends of $0.386 in May 2011, $0.191 in Feb 2011, and $0.325 in Nov 2010; thus, cumulative dividends paid during the four quarters up to and including the Aug 2011 payment are $1.48/sh. At the current share price, this comes to an annualized yield of 4.6%.

As is the case for most ADRs, 15% of VALE’s dividends are withheld by the host country; however, this tax can be recouped as a credit against US income taxes.