Newmont is the world's largest gold miner... Show more
Newmont Corporation (NEM), a leading gold producer, maintains a modest quarterly dividend policy with a current trailing yield of 0.89% and forward annualized dividend of $1.04 per share. The most recent quarterly payout is $0.26 per share, declared for Q4 2025 and paid on March 26, 2026, to shareholders of record as of March 3, 2026. This positions NEM as neither a high-yield play nor a rapid dividend growth stock, but rather a stable payer in the cyclical gold mining sector. The company's capital allocation framework prioritizes a sustainable base dividend of $1.1 billion annually, supplemented by share repurchases to enhance per-share value over time. With gold prices supporting operations, NEM's dividend appeals to investors seeking commodity-linked income with low risk of cuts.
Newmont has paid quarterly dividends consistently for decades, though amounts have fluctuated with gold market cycles and corporate events like the 2023 Newcrest acquisition, which prompted a reset to $0.25 per share. Recent payments include $0.25 for Q3 2025 and $0.26 for Q4 2025, reflecting stability rather than aggressive growth. Historically, dividends peaked around $0.55 quarterly during 2020-2022 gold highs but were adjusted lower amid debt reduction. NEM does not maintain a dividend growth streak like Dividend Aristocrats. Instead, its strategy emphasizes sustainability, with per-share growth targeted through ongoing share buybacks under a $6 billion authorization.
NEM's dividend appears highly sustainable, with a payout ratio of just 15.65% against TTM EPS of $6.38. This leaves ample room for reinvestment or increases. Free cash flow hit a record $7.3 billion in 2025, far exceeding the $1.1 billion annual dividend commitment, providing robust coverage. The balance sheet ended 2025 with $2.1 billion in net cash and $11.6 billion liquidity, minimizing debt risks (net debt/cash positive). In the volatile gold sector, this conservative approach—coupled with disciplined capex—supports ongoing payments through commodity cycles.
In the gold mining industry, NEM's 0.89% yield is competitive. Peer AEM offers 0.82% with an 18.62% payout ratio, while KGC yields 0.39%. GOLD (Barrick Gold) provides a higher 1.82% yield. NEM's lower payout ratio (15.65%) versus peers like AEM (18.62%) suggests greater flexibility, though its yield sits in the middle range for major producers. This profile suits investors prioritizing stability over maximum income in a sector where dividends often vary with metal prices.
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Newmont Corporation (NEM) may appeal to conservative dividend investors seeking gold sector exposure with reliable, low-risk income. Its modest 0.89% yield, backed by a 15.65% payout ratio and record free cash flow, offers stability amid commodity volatility. Those prioritizing total return could value the share buyback program driving per-share dividend growth, alongside potential upside from rising gold prices. However, it may not suit high-yield seekers, given the lower yield versus some peers like GOLD, or growth-focused investors expecting rapid dividend hikes. Long-term holders balancing income, capital appreciation, and inflation hedging via gold may find NEM's profile balanced, though sector risks like production costs and metal prices warrant monitoring.
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a company which explores and mines for gold and silver
Industry PreciousMetals