April 21, 2025 a 07:46 am
NEM: Dividend Analysis - Newmont Corporation
Newmont Corporation, a leader in the gold mining sector, boasts a significant legacy with a consistent dividend payout for over 40 years. Established investing practices ensure reliable dividend returns despite recent challenges, reflecting in its current dividend yield of approximately 2.35%.
📊 Overview
| Attribute | Value |
|---|---|
| Sector | Materials |
| Dividend yield | 2.352% |
| Current dividend per share | $0.999 |
| Dividend history | 40 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history analysis provides insight into Newmont's long-term reliability and consistency in shareholder returns.
| Year | Dividend per Share |
|---|---|
| 2025 | $0.25 |
| 2024 | $1.00 |
| 2023 | $1.60 |
| 2022 | $2.20 |
| 2021 | $2.20 |
📈 Dividend Growth
Analyzing dividend growth provides insights into the company's ability to increase investor returns over time.
| Time | Growth |
|---|---|
| 3 years | -0.23% |
| 5 years | -0.07% |
The average dividend growth is -0.07% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
The payout ratios are critical in assessing dividend sustainability and the company’s ability to meet its obligations.
| Key figure | Ratio |
|---|---|
| EPS-based | 34.23% |
| Free cash flow-based | 38.47% |
The current EPS-based payout ratio of 34.23% and the FCF-based ratio of 38.47% are indicators of prudent and sustainable payout practices.
Cashflow & Capital Efficiency
Understanding cash flow and capital efficiency is vital for evaluating investment returns and operational management.
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 2.91% | 0.28% | 14.92% |
| Earnings Yield | -1.35% | -7.16% | 7.85% |
| CAPEX to Operating Cash Flow | - | 96.49% | - |
| Stock-based Compensation to Revenue | 0.61% | 0.67% | 0.48% |
| Free Cash Flow / Operating Cash Flow Ratio | 33.82% | 3.51% | 100.00% |
| Return on Invested Capital | 40.66% | 1.73% | 8.01% |
The rising free cash flow yield in 2024 indicates improved capital efficiency and robust cash management strategies.
Balance Sheet & Leverage Analysis
The leverage and balance sheet analysis are essential for assessing financial health and debt management.
| Indicator | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 31.68% | 32.51% | 29.8% |
| Debt-to-Assets | 15.93% | 17.00% | 15.92% |
| Debt-to-Capital | 24.06% | 24.53% | 22.96% |
| Net Debt to EBITDA | 0.99 | 20.11 | 0.68 |
| Current Ratio | 2.23 | 1.25 | 1.63 |
| Quick Ratio | 1.63 | 0.81 | 1.34 |
| Financial Leverage | 1.99 | 1.91 | 1.87 |
The debt metrics show moderate leverage levels with a strong capacity to manage liabilities.
Fundamental Strength & Profitability
Understanding profitability metrics such as ROE and margins are key for evaluating operational success.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | -2.61% | -8.59% | 11.12% |
| Return on Assets | -1.31% | -4.49% | 5.94% |
| Net Margin | -4.25% | -21.11% | 18.04% |
| EBIT Margin | 1.48% | -15.14% | 26.74% |
| EBITDA Margin | 27.54% | 2.71% | 42.39% |
| Gross Margin | 27.38% | 25.44% | 34.62% |
| Research & Development to Revenue | 1.92% | 1.69% | 1.06% |
While Newmont's profitability faced challenges in 2023, it rebounded strongly in 2024 with improved ROE and margins.
Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 3 | |
| Dividend growth | 2 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 27/40
✅ Rating
Newmont Corporation demonstrates a solid dividend-paying foundation with moderate growth prospects. While facing challenges in recent years, the improved 2024 performance provides confidence in future dividend stability. It is recommended for investors seeking reliable, albeit moderate, income streams.