Yahoo Finance Newmont Corp's Dividend Analysis
Exploring the Sustainability and Growth of Newmont Corp's Dividends
Introduction to Newmont Corp's Upcoming Dividend
Newmont Corp (NYSE:NEM) recently announced a dividend of $0.25 per share, payable on 2024-06-27, with the ex-dividend date set for 2024-06-04. As investors anticipate this forthcoming payment, it is crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis delves into the dividend performance of Newmont Corp and evaluates its sustainability.
What Does Newmont Corp Do?
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Newmont is the world's largest gold miner. It acquired Goldcorp in 2019, formed a joint venture with Barrick in Nevada later that year, and recently purchased competitor Newcrest in November 2023. Newmont's portfolio spans 17 wholly or majority-owned mines and two joint ventures across the Americas, Africa, Australia, and Papua New Guinea. In 2024, the company is projected to produce approximately 6.9 million ounces of gold. Following the acquisition of Newcrest, Newmont is expected to divest several higher-cost, smaller mines that account for 20% of its forecasted sales in 2024. Additionally, Newmont produces significant quantities of copper, silver, zinc, and lead as byproducts. As of December 2023, it boasted roughly two decades of gold reserves and substantial byproduct reserves.
A Glimpse at Newmont Corp's Dividend History
Newmont Corp has upheld a consistent dividend payment record since 1986, with dividends currently distributed on a quarterly basis. Below is a chart depicting the annual Dividends Per Share, which illustrates historical trends.
Breaking Down Newmont Corp's Dividend Yield and Growth
As of today, Newmont Corp boasts a 12-month trailing dividend yield of 3.44% and a 12-month forward dividend yield of 2.38%, indicating an expected decrease in dividend payments over the next year. Over the past three years, the annual dividend growth rate was 15.40%, which extended to 33.50% per year over five years, and a commendable 25.30% over the past decade. The 5-year yield on cost for Newmont Corp stock is approximately 14.59% as of today.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of its dividends, it is essential to consider Newmont Corp's dividend payout ratio, which currently stands at 0.83. This ratio suggests that the company retains a significant portion of its earnings, which supports future growth and buffers against downturns. Additionally, Newmont Corp's profitability rank is 6 out of 10, indicating fair profitability with consistent net profit reported in 6 of the past 10 years.
Growth Metrics: The Future Outlook
Newmont Corp's growth rank of 6 suggests a fair growth outlook. However, its revenue per share and 3-year revenue growth rate indicate a slight underperformance compared to global competitors. The company's 3-year EPS growth rate and 5-year EBITDA growth rate also show underperformance, which could impact the sustainability of future dividends.
Conclusion
While Newmont Corp has demonstrated strong historical dividend growth and maintains a reasonable payout ratio, its recent underperformance in revenue and earnings growth rates may raise concerns about the sustainability of future dividends. Investors should monitor these metrics closely. For those looking for high-dividend yield opportunities, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
