The board of the world’s largest gold miner, Newmont (TSX: NGT; NYSE: NEM), has declared a fourth-quarter dividend of US55c per common share, maintaining its position as the highest dividend yield in the industry.
The dividend will be paid on March 24 to owners of record at the close of business on March 10.
The Colorado-based company expects to release its fourth-quarter and full-year 2021 results on February 24.
Based on cash flows through the third quarter of 2021, Newmont was on track to return US$1.7 billion to shareholders through its industry-leading dividend framework.
The annualized dividend framework entails a US$1.00 per share ‘sustainable’ base dividend, payable at US$1,200 per ounce gold, plus a quarterly declared incremental payment targeting 40% to 60% of total attributable free cash flow above US$1,200 returned to shareholders.
With the third and fourth quarter dividends now confirmed at US55c, the 2021 annualized dividend payment to shareholders is US$2.20 per share on an annualized basis.
Newmont says it evaluates the dividend returns in concert with gold price fluctuations of US$300 per ounce. Should gold trade at US$2,100 per ounce, annualized payouts could reach $2.80 to $3.70 per share.
Adding further value for shareholders is the company’s opportunistic US$1 billion share repurchase program, which had seen Newmont repurchase more than US$400 million up to the end of September.
Newmont is well-positioned for leverage in a rising gold price, with free cash flows increasing US$400 million for every US$100 per ounce increase in the gold price.
The gold price has been ticking higher in recent days amid increased global geopolitical tension, moving above US$1,900 per ounce on Tuesday.
At US$67.33, Newmont’s New York-quoted equity is trading up nearly 19% over the 12-month timeframe, giving it a market capitalization of US$53.7 billion.
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