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Newmont Mining Corp declares $0.15 dividend

Comments (4)
  • Philip Marlowe
    , contributor
    Comments (1067) | Send Message
     
    Another dividend cut. NEM has now cut dividends every quarter for four quarters in a row!
    19 Feb, 08:02 PM Reply Like
  • 2839298249
    , contributor
    Comments (304) | Send Message
     
    Phil-Isn't NEM's dividend indexed to the price of gold?
    19 Feb, 10:06 PM Reply Like
  • Stephen Percoco, CFA
    , contributor
    Comments (83) | Send Message
     
    This, unfortunately, was a bigger dividend cut than 5 cents per quarter. On a go-forward basis, the company reduced its sliding scale for dividends based upon the price of gold by 50 cents (with gold at $1,200-$1,299 per ounce) to $2.10 per annum (with gold above $2,000 per ounce). The new rate for gold at $1,200-$1,299 per ounce is $0.10 per share per annum. So the new forward yield at that gold price is 0.4%. If the London p.m. fix stays within $1,300-$1,399 per ounce (gold closed at $1,310 today), then the dividend is $0.20 per annum, equivalent to a 0.8% forward yield. Apparently, the company decided to pay a $0.15 dividend this quarter for the last time. The new dividend policy does raise some questions, which hopefully will be answered on the conference call on Friday. The market seemed to take the news in stride. The dividend cut was pretty well telegraphed by management on a recent conference call. The stock was off 1.8% today, but most of the damage has already been done. If gold remains relatively firm, this will hopefully be a bottom for the stock.
    19 Feb, 10:18 PM Reply Like
  • blades58
    , contributor
    Comments (8) | Send Message
     
    stop whining about the dividend. you need a steady one buy a regulated utility stock
    19 Feb, 11:16 PM Reply Like
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