Want to buy New Hope shares for the dividend? You don't have long!

It's almost dividend time.

| More on:
A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today

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

New Hope Corporation Ltd (ASX: NHC) shares will soon go ex-dividend. So, investors wanting a piece of the action will need to be quick.

The ASX coal share recently reported its FY23 annual result, which included an announcement of its final dividend for the financial year.

The coal company declared a final fully franked ordinary dividend of 21 cents per share and a final fully franked special dividend of 9 cents per share. This brings the total to 30 cents per share.

New Hope shares are about to go ex-dividend

When a company goes ex-dividend, new investors are no longer entitled to that upcoming dividend payment.

The ex-dividend date is the day new investors miss out. So if someone wants to take advantage of the dividend, they need to invest before that date.

In this instance, the ex-dividend date for New Hope's upcoming dividend is 23 October. That's on Monday, meaning the last day to invest in the company for a slice of the payout is 20 October. Which is today!

This dividend will be paid on 7 November 2023, so investors won't have to wait long.

Dividend yield

The combined dividends equate to a grossed-up dividend yield of 6.7% from New Hope shares. But an investor shouldn't buy an asset just because of the income yield; the valuation needs to make sense as well.

Looking at the total full year fully franked dividends declared of 70 cents per share, that represents a grossed-up dividend yield of 15.6%.

The projection on Commsec suggests the dividend is going to be smaller in FY24, with a total annual payout of 41 cents per share, which would be a grossed-up dividend yield of 9.1%.

New Hope share price snapshot

As we can see on the chart below, New Hope shares are up around 10% this year and more than 30% higher since 30 June 2023.

However, remember that past performance is not a reliable indicator of future performance, particularly given the volatility of a mining company.

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

More on Resources Shares

Three satisfied miners with their arms crossed looking at the camera proudly
Dividend Investing

3 top ASX 200 mining shares for bank-busting dividend income in 2024

All three ASX 200 mining shares pay fully franked dividends.

Read more »

Miner looking at a tablet.
Resources Shares

What can ASX 200 investors expect from the Rio Tinto share price in 2024?

Atop a big boost in the Rio Tinto share price over the past 12 months, the ASX 200 miner also…

Read more »

Two miners standing together.
Resources Shares

Could Donald Trump really sink the Fortescue share price?

Fortescue founder Andrew Forrest is making some big bets on green hydrogen.

Read more »

Three miners looking at a tablet.

2 ASX mining ETFs to buy in December

Lithium and uranium exposure is a doddle with these ETFs.

Read more »

A young boy sits on top of a big rubber bouncing ball with handles as he smiles a toothless grin at the camera and bounces above the ground in a grassy field with a blue sky.
Dividend Investing

Here's why the dividends from BHP shares could rebound in 2024

The full-year BHP dividend slumped 43% in FY 2023, but passive income investors could see an uptick in FY 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Lithium, copper and gold stocks: Will they GO OFF IN 2024?

Bell Direct's Grady Wulff analyses the three hottest commodities to determine what their fortunes could be like next year.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Why these 3 ASX 200 mining shares leapt into The Motley Fool's news this week

From iron ore to copper to green hydrogen, there was plenty of excitement amongst the ASX 200 miners this week.

Read more »

Two people smiling at each other while running.
Resources Shares

2 ASX 'not mining' shares I think are overdue for a big rally

The cyclical nature of resources stocks is not everyone's cup of tea. But here's a pair of investments that could…

Read more »