When the price of gold increases, Newmont Mining Corp.'s (NYSE:NEM) shareholders prosper. NEM engages in the acquisition, exploration and production of gold and copper properties.
July 15, the company increased its quarterly dividend 17% to $0.35 per share of common stock. The dividend is payable on Sept. 28, 2012, to holders of record at the close of business on Sept. 6, 2012. The yield based on the new payout is 3.0%.
The company's president and CEO, Richard O'Brien, stated: "Reflecting our commitment to capital discipline and returning capital to our shareholders, we have increased our dividend for the fourth time during the last year."
The company links its dividend to the price of gold and recently revised formula from the Company's average realized gold price to the average London P.M. Fix price for the preceding quarter. The third quarter 2012 dividend of $0.35 per share was based on the average London P.M. Fix of $1,609 per ounce for the second quarter 2012.
Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
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