Bank of America Merrill Lynch Discusses Dividend Hike From Cliffs Natural Resources

Bank of America Merrill Lynch is out with a research report on Cliffs Natural Resources Inc CLF, and it has a Buy rating and a $118 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "CLF management announced after market close Monday that its board had agreed to double its quarterly cash dividend to $0.28/share, payable starting Sept. 1. CLF management had already said at its investor day on June 28 that it would propose to move CLF in line with a peer group average 1.25% dividend yield from 0.6%. At the current price and an annualized dividend of $1.12, CLF's new dividend yield would be 1.18%. We had modeled an increase to $0.25/share." Shares of CLF lost $2.38 yesterday to close at $95.04, a loss of 2.44%.