Newmont hikes dividend by 60%
The world's largest gold miner announced today a 60% increase to its dividend, its second divident increase in 2020.
Newmont's board declared a quarterly dividend of 40 cents per share of common stock, payable on December 28, 2020 to holders of record at the close of business on December 11, 2020.
The third quarter dividend represents an increase of 60 percent compared to the prior quarterly dividend of 25 cents per share.
"This dividend increase is supported by a framework to return 40 to 60 percent of incremental attributable free cash flow to shareholders that is generated above a $1,200 per ounce gold price," wrote the company (NYSE:NEM) in a news release.
"Newmont's dividend framework shares incremental free cash flow with shareholders at higher gold prices. In this instance, the dividend increase was based on a $1,500 per ounce gold price assumption and a 40 percent payout rate applied to our previously articulated $1.2 billion incremental free cash flow for every $300 per ounce change in the gold price. Newmont’s base annualized dividend remains at $1.00 per share and is sustainable at a $1,200 per ounce gold price."