Newmont Corporation Increases Quarterly Dividend by 60 Percent to $0.40 Per Share
DENVER, CO (STL.News) Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced that its board declared a quarterly dividend of $0.40 a share of common stock, payable on December 28, 2020 to holders of record at the end of business on December 11, 20 20. The next quarter dividend represents a growth of 60 percent compared to prior quarterly dividend of $0.25 per share.
Newmont’s dividend is the best from the gold industry also demonstrates that the Company’s commitment to supplying investors with industry-leading yields. Newmont’s capital allocation doctrine remains unchanged and balances stable re investment from the company, maintaining financial strength and flexibility, and also providing leading returns to shareholders.
For the 3rd quarter, the board declared a 60 per cent increase in our quarterly dividend — that equates to a $0.60 per share annualized increase. This dividend increase is encouraged by means of a framework to return 40 to 60 percent of incremental free income to shareholders that is generated above a $1,200 per ounce gold price. Newmont’s dividend framework shares incremental free cash flow with investors at higher gold prices. In this case, the dividend increase was based on a $1,500 per ounce gold price premise and a 40 percent payout rate exerted to the previously average $1.2 billion incremental free income for each and every $300 per ounce change in the gold cost. Newmont’s base annualized dividend continues at $1.00 per share and can be renewable at a $1,200 per ounce gold price tag.
“We are pleased to announce an increase to the annualized dividend of 60 per cent to $1.60 per share driven by our strong performance and confidence within our world-class portfolio to create value,” said Tom Palmer, President and Chief Executive Officer. “This could be actually the second increase to our investment in 2020 and reflects the potency of Newmont’s portfolio to pay for a higher dividend while we continue to advance profitable projects and maintain economic flexibility and strength. Our dividend framework provides investors with a renewable base dividend and also the means to benefit from Newmont’s significant free cash flow generation at higher gold rates.”
Newmont has the most powerful and most sustainable portfolio of operations, projects and mining prospects in the gold industry. Newmont’s world-class portfolio has attracted more than $2.2 billion to shareholders through dividends and share buybacks since January 20-19.
The declaration and payment of future dividends stays in the discretion of the Board of Directors and will be dependent on the corporation’s financial results, cash flow and cash requirements, future prospects, along with other factors deemed relevant by the Board.