The New Hope Corporation Limited (ASX: NHC) share price is the best performer of the S&P/ASX 200 Index (ASX: XJO) today, up 5.36% to $5.605 in late afternoon trading.
The ASX 200 coal share is rising after the miner yesterday revealed that it doubled its profits in 1H FY23.
As a result, the New Hope dividend has been turbocharged by 76% to a new record level.
The coal miner will pay an interim dividend of 30 cents per share fully franked. It will also pay a special dividend of 10 cents per share fully franked.
ASX investors loved the news and pushed the New Hope share price 6% higher yesterday as a result.
It seems there's a happy hangover going on today, with the New Hope share price surging again.
As trading draws to a close, the New Hope share price has gained more than any other ASX 200 share today.
What else is pushing New Hope higher today?
In a good news bonus for New Hope, we saw a rise in commodity prices overnight, which is why ASX 200 energy shares are leading the market today.
The S&P/ASX 200 Energy Index (ASX: XEJ) is up 4.17% at the time of writing.
Fellow ASX 200 energy share Woodside Energy Group Ltd (ASX: WDS) is the second-best performer of the ASX 200 today and is on track to record its best gain in almost six months, currently up by 5.1%.
Oil, gas, and coal prices are all rebounding after recent slumps.
The coal price improved by 0.58% overnight to US$174 per tonne.
Broker tips share price and dividend growth
Following New Hope's half-yearly results, Morgans has reiterated its buy rating with a 12-month share price target of $6.35. This implies a nice potential upside of 13% from current levels.
But wait, there's more.
Morgans is forecasting a fully franked full-year dividend of $1 per share in FY23, equating to a whopping 18% dividend yield at current prices.
It forecasts a 90-cent dividend in FY24, but even so, that's still the equivalent of a 16% yield.
As my colleague James points out, you'll be hard-pressed to get a better dividend from any other ASX 200 share.
Morgans says:
NHC's prior approach to M&A, the DNA of its board and its very high franking balance (~$600m) suggests to us that windfall returns of surplus capital (in time) are on offer for patient/ value investors.
