The Newcrest (ASX:NCM) dividend boosted 129%

Newcrest marks its sixth successive year of increasing dividend payments to shareholders

| More on:
A businessman on a road raises his arms as dollar notes rain down on him.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Newcrest Mining Ltd (ASX: NCM) dividend just increased for a sixth consecutive year thanks to higher copper and gold prices.

The mining giant released an encouraging FY21 result on Thursday, when its share price closed 1.07% higher to $25.54.

How did Newcrest perform in FY21?

Contrary to the performance of the Newcrest share price, which is down 5% year-to-date, the company delivered a well-rounded financial performance with key highlights including:

  • Revenue up 17% on the prior corresponding period (pcp) to $4.6 billion.
  • Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 33% to $2.4 billion.
  • Underlying and statutory profit of $1.2 billion. Underlying profits increased 55% and statutory profit surged 80%.
  • Basic earnings per share (EPS) of US $1.425 — up 71% on the pcp.
  • Gold production of 2.1 million tonnes and record copper production of 142.7 thousand tonnes.
  • Realised gold price up 17% to US$1,796/oz.
  • Realised copper price up 42% to US$3.66/lb.

The company also advanced a number of organic growth options at its flagship Cadia gold and copper mine in New South Wales, as well as emerging mines Red Chris in Canada and Havieron in Western Australia.

Newcrest dividend more than doubles in FY21

Newcrest managing director and CEO Sandeep Biswas commented on the increase in shareholder returns:

Our dividend policy targets total dividends for a financial year to be in the range of 30-60% of that financial year's free cashflow, with a minimum annual dividend of US 15 cents per share. Given our record free cash flow generation for FY21, strong balance sheet and positive outlook the Board has approved a final dividend of US 40 cents per share, which is 129% higher than last year's final dividend. This equates to a record total full-year dividend of US 55 cents per share which represents a 41% payout of FY21's free cashflow and marks our sixth consecutive year of increasing dividends to shareholders.

Newcrest dividend key dates

The Newcrest share price will go ex-dividend on Thursday, 26 August, and be paid out on Thursday, 30 September.

Shares in the mining giant suffered a drop in early trade today, down 2.23% to $24.97.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Dividend Shares

falling healthcare asx share price Mesoblast capital raising
⏸️ Dividend Shares

Sonic Healthcare (ASX:SHL) dividend rises 7%, share price falls after FY21 results

Triple digit profit growth and a solid dividend was not enough to impress investors on Monday.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
⏸️ Dividend Shares

The Adairs (ASX:ADH) dividend more than doubled in FY21

A record financial result will see a generous dividend paid out to Adairs shareholders.

Read more »

Happy couple laughing while shopping in supermarket
52-Week Highs

August has been a great month so far for the Woolworths (ASX:WOW) share price

We take a look at how shares in the supermarket giant have been performing ahead of the company's full-year results

Read more »

wine glass full of coins
⏸️ Dividend Shares

The Treasury Wines (ASX:TWE) dividend bumped up by 60%

Here's how Treasury Wines dividends for FY21 have stacked up.

Read more »

Young boy cries and covers eyes with torn money on table
⏸️ Dividend Shares

The Origin (ASX:ORG) dividend has dropped 20%

What's happened to Origin's dividends?

Read more »

two people hold a sheet above their head while making a bed in a room featuring homewares.
Retail Shares

How did the Adairs (ASX:ADH) share price respond last earnings season?

The homewares retailer will be looking for another year like last year when it releases its FY21 earnings tomorrow.

Read more »

Two men excited to win online bet
Share Market News

Why the Tabcorp (ASX:TAH) dividend was boosted by 32%

The strong performance of Tabcorp's business will see a combined FY21 dividend of 14.5 cents.

Read more »

A businessman on a road raises his arms as dollar notes rain down on him.
⏸️ Dividend Shares

What you need to know about the BHP (ASX:BHP) dividend dates in 2021

Despite a sharp selloff after its results announcement, BHP will be paying a record dividend.

Read more »