Newmont Mining Corp. (NEM, Financial) announced a quarterly dividend of 5 cents per share April 19. The quarterly dividend that Newmont Mining will distribute to its shareholders for the first three months of 2017, represents a 100% increase from the quarterly dividend that the largest U.S. gold producer paid to its shareholders for the comparable period of 2016.
The dividend will be paid on June 22 to shareholders of record as of June 8.
The quarterly dividend of 5 cents per share leads to an annual dividend of 20 cents per share and to a dividend yield of 0.58%. The entity of the quarterly dividend is at Newmont Mining's board of directors' discretion and depends on future prices gold will take per troy ounce on the bullion market at the end of afternoon negotiations as shown in the picture below.
Newmont Mining has one of the best assets base in the gold stock industry in terms of both life of mine and average gold grade that is the concentration of the precious metal in one ton of mineral. Because of its high-quality portfolio of assets, the American miner can take full advantage from rising precious metals that are set to trade higher in 2017 and beyond as a response to the uncertainty in the financial markets besides the Fed tendency to surprise analysts' expectations on interest rate hikes. Therefore, it is likely that Newmont Mining will keep on distributing dividends to its shareholders for the rest of 2017 and beyond.
Year to date, Newmont Mining lost 1.61% and is trading at $33.52 per share. The analysts' average target price per share is $39.17, which represents a nearly 17% upside from the current share price.
The recommendation rating is 2.5, which means the analysts' suggestion on Newmont Mining is exactly in between a buy and hold recommendation. The recommendation rating ranges between 1.0 (Strong Buy) and 5.0 (Sell).
For the first quarter of 2017, analysts forecast the U.S. miner will generate an EPS of 23 cents per share, a -32.4% decrease from EPS of 34 cents reported in the first quarter of 2016.
Concerning revenue, analysts forecast $1.74 billion on average for the quarter, which is 14.30% lower than first-quarter 2016 revenue. It ranges between a low estimate of $1.67 billion and a high estimate of $1.83 billion.
For the year, analysts estimate EPS of $1.04, ranging between a low of 38 cents and a high of $1.52. This represents an 11.1% decrease from the same figure a year ago. Revenue is expected to increase 5.80% to $7.1 billion in 2017, up from $6.71 billion in 2016.
As of the most recent quarter, Newmont had approximately $2.81 billion in cash and securities. The total debt amounted to $4.62 billion, a 21.3% decrease from the last quarter of 2016.
The long-term debt-equity ratio is 37.77, in line with its industry, and the interest coverage ratio (ttm) is 2.13, which means that the gold producer doesn't have any problems in paying interest expenses on the outstanding debt.
Newmont Mining has 531.5 million shares outstanding. The percentage of shares held by insiders is 0.13% and by institutions is 80.30%. The number of shares available for trading is approximately 529.45.
At the moment Newmont Mining is trading its sales computed over a 12 trailing months period at 2.65 times and its book value at 1.66 times. The EV to EBITDA is 7.74.
Among the top institutional holders, the Vanguard Group stands out with 51,253,019 shares of the U.S. gold mining company, or 9.66% of the company's total number of shares outstanding, valued approximately $1.75 billion as of Dec. 31, 2016.
Disclosure:I have no position in any stock mentioned in this article.
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