In the past 30 days, five analysts have raised their EPS analysts for this gold producer. The shares have a current annual dividend yield of 3.15%, paid quarterly.
Newmont Mining Corporation (NEM)
From The Dividend Hunter
Earlier this year, I selected large-cap gold mining company Newmont Mining Corp. as my Wall Street’s Best Digest Top Pick for 2021. At that time, Newmont offered the potential for significantly higher dividends with a unique dividend policy. As a result, Newmont started to pay a significant portion of added free cash flow as dividends:
- The base dividend rate is $0.25 per quarter/$1.00 per year. That rate has a base gold reference at $1,200 per ounce.
- Targeting 40% – 60% of incremental free cash flow with gold above $1,200 to be paid as dividends.
- Evaluating dividend increases with gold price increments of approximately $300 per ounce.
As of June 11, NEM’s share price is up 18.6%. The company paid $0.55 per share in March and mid-June.
The $0.55 dividend rate is based on $1,800 gold. The next increase comes at $2,100.
I use the Momentum Structural Analysis service, for technical indicators, especially gold. MSA says cracking $1,950 for gold would trigger a breakout move higher. That would be good for both the NEM share price and the dividend.
Newmont Mining Corporation remains my stock pick for exposure to precious metals and as an inflation hedge.
Tim Plaehn, The Dividend Hunter, yn345.isrefer.com/go/cabmdpc/cab/, June 11, 2021