New Hope Corp Ltd (ASX: NHC) shares are down 1.35% in early afternoon trading on Friday.
Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $5.54. Shares are currently changing hands for $5.47 apiece.
Keep that price in mind, as it will enable us to address the question, do New Hope shares really pay a 17% dividend yield?
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Does the ASX 200 coal miner really pay a 17.6% dividend yield?
The answer is yes.
And no.
Let me explain.
The ASX 200 coal miner reported some stellar half-year results on Tuesday, which saw New Hope shares close up 8.6% on the day.
On the back of record-high coal prices during the six-month period, the company saw its after-tax profits increase a remarkable 101% from the prior corresponding half-year period.
This encouraged the New Hope board to declare a 30 cents per share ordinary dividend and a 10 cents per share special dividend, both fully franked.
Now the stock doesn't trade ex-dividend until 17 April.
Until that time, the official dividends over the last 12 months come from the final dividend of 56 cents per share (ex-dividend on 24 October). And the 30 cents per share interim dividend (ex-dividend on 14 April 2022).
With those numbers, New Hope shares pay a trailing yield of 15.8%.
Not bad. But a bit short of 17.6%.
However, if you hold the shares at market close on 17 April, you'll then be holding a stock that's paid out 96 cents per share over the prior 12 months rather than 86 cents per share.
Buying in at today's $5.45 per share, that works out to a yield of 17.6%.
The interim dividend will be paid on 3 May.
How have New Hope shares been performing?
As you can see on the chart below, New Hope shares have been strong outperformers over the past 12 months, up 60%.
For some context, the ASX 200 is down 6% over that same period.
