The Newcrest (ASX:NCM) dividend boosted 129%

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

| More on:
A business man on a road raises his arms as dollar notes rain down on him, indicating a dividends windfall

Image source: Getty Images

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)聽increased 33% to $2.4 billion.
  • Underlying and statutory profit of $1.2 billion. Underlying profits increased 55% and statutory profit surged 80%.
  • Basic聽earnings per share (EPS)聽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鈥檚 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鈥檚 final dividend. This equates to a record total full-year dividend of US 55 cents per share which represents a 41% payout of FY21鈥檚 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.

Should you invest $1,000 in Newcrest right now?

Before you consider Newcrest, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Newcrest wasn't one of them.

The online investing service he鈥檚 run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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 鈴革笍 Dividend Shares