OR Royalties Raises Quarterly Dividend 18.2% to $0.065

OR Royalties Inc. raised its quarterly dividend 18.2% to $0.065 per share from $0.055. The increased payment went ex-dividend on June 30, 2026, and the next ex-dividend date is September 30, 2026. The new rate represents an annual dividend of $0.26 per share.

Why the dividend changed

The board’s dividend announcement did not give a detailed financial rationale for the increase. It said the higher quarterly rate was intended to apply to subsequent quarters until further notice, while leaving future declarations at the board’s discretion. The increase was not connected to a stock split, merger or spinoff.

The operating backdrop provides the clearest explanation. In the second quarter, royalty and stream revenue and operating cash flow each increased 62% from a year earlier. The company reported a 96.8% cash margin and said higher precious-metals prices and contributions from recently acquired assets supported the improvement. Management maintained its 2026 guidance of 80,000 to 90,000 gold-equivalent ounces, according to its second-quarter results.

OR Royalties also closed $335.0 million of acquisitions during the quarter, including royalties tied to the producing San Gabriel mine and the Spring Valley project. President and Chief Executive Jason Attew said the company’s cash generation was strong enough to fund a growing dividend while also supporting share repurchases and new investments. That capital-allocation framework places the increase alongside portfolio expansion rather than presenting it as an isolated distribution decision.

Dividend track record

The latest increase extends OR Royalties’ dividend-growth streak to 3 consecutive years, but the payment record has not advanced in a straight line. The quarterly amount was $0.044 on March 27, 2024, rose to $0.047 on June 28 and $0.048 on September 27, then moved to $0.045 on December 31. It subsequently increased to $0.055 by June 30, 2025, remained at that level on March 31, 2026, and reached $0.065 on June 30, 2026.

Annual totals show gradual growth over a longer period. Payments totaled $0.15 per share in 2020 and $0.17 in 2021, an increase of 12.8%. The 2022 total remained $0.17 after falling 0.6%, followed by $0.18 in 2023 and $0.18 in 2024, increases of 4.8% and 5.1%, respectively. The 2025 entry contains only 2 payments totaling $0.10 and was down 45.7%; that partial-year figure is not comparable with the four-payment annual totals.

The pattern is one of modest annual progression accompanied by occasional quarterly variation. The latest step is larger than the annual changes recorded in 2023 and 2024.

Is the dividend covered?

The dividend uses 15% of earnings. That leaves most reported earnings outside the distribution and provides a substantial cushion against ordinary fluctuations in royalty receipts, commodity prices and mine deliveries.

SmarterDividends rates the dividend A, with a safety score of 78. In plain terms, the rating places the payment in the very safe category based on current earnings coverage and the company’s financial profile. It does not eliminate operating risk because OR Royalties depends on third-party mine operators and commodity-linked revenue, but the present earnings payout is conservative.

Yield and valuation

At a share price of $35.75, the $0.26 annual dividend produces a 0.72% forward yield. That is below the Basic Materials sector median forward yield of 1.88%, so the increase does not make OR Royalties a high-yielding sector name. An investor holding 100 shares receives $26.00 in annual dividend income at the current rate.

The company has a market value of $6.7 billion, and its shares recorded a 14.9% gain over the past year. SmarterDividends estimates fair value at $26.13 and classifies the shares as overvalued, corresponding to 29% downside to fair value. The low relative yield and valuation verdict indicate that the market price reflects more than the current cash distribution, including the value assigned to OR Royalties’ asset portfolio and growth pipeline.

What to watch

The immediate calendar item is the September 30, 2026 ex-dividend date. The company has maintained the $0.065 rate for that quarterly distribution, confirming that the increase continued beyond the payment that went ex-dividend in June. Its dividend history identifies the payment as an eligible dividend for Canadian tax purposes.

Operating performance remains the principal coverage check. The next quarterly results will show whether royalty deliveries, revenue and operating cash flow remain aligned with the company’s 2026 guidance after acquisition spending and accelerated share repurchases. Canadian Malartic also warrants attention after an unscheduled mill shutdown affected second-quarter deliveries and a rock movement was reported at the Barnat open pit.

New assets provide another measurable point. OR Royalties said Cuiú Cuiú produced its first gold in September, while first gold at Amulsar was imminent. Its latest portfolio briefing also detailed continuing work at Dalgaranga, Cariboo and Windfall. Progress at these operations will determine how quickly the enlarged portfolio contributes additional royalty and stream cash flow.