If you're on the lookout for some big dividends, then you may want to have a look at New Hope Corporation Ltd (ASX: NHC).
Particularly given that the ASX 200 stock will be trading ex-dividend next week. When this happens, it means the rights to the coal miner's next dividend will be settled.
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The New Hope dividend
As a reminder, last month the ASX 200 stock released its half-year results.
For the six months ended 31 January, New Hope reported a 45.9% decline in revenue to $856.6 million and a 59% reduction in EBITDA to $424.8 million.
This reflects a 58% decline in its average realised price to A$197 per tonne and an 11% increase in cash costs, which was partially offset by hedging and a 28% lift in saleable coal production.
Unsurprisingly, this forced the New Hope board to take an axe to its dividend. It cut its fully franked interim dividend by 57% to 17 cents per share.
And while a dividend cut is always disappointing, this payout still equates to a very generous dividend yield. Particularly for just an interim dividend.
Based on the current New Hope share price of $4.86, this dividend represents a 3.5% yield for income investors buying shares today.
If you want to receive this dividend when it is paid on 1 May, you will need to own its shares before they trade ex-dividend. That is scheduled to be next week on Monday 15 April.
More to come
But that won't be the only dividend that the ASX 200 stock pays this year. There's also likely to be a fully franked final dividend paid to shareholders in approximately six months.
According to a recent note out of Morgans, its analysts expect a final dividend of 18 cents per share later this year.
This will bring its total dividends to 35 cents per share in FY 2024. This would be a 50% reduction on the dividends it paid a year earlier.
Nevertheless, this still represents a sizeable 7.2% dividend yield based on its current share price.
Should you buy this ASX 200 stock?
Morgans thinks that New Hope's shares are largely fully valued now.
The broker currently has a hold rating and a $4.80 price target on the coal miner's shares. This implies a modest downside of 1.4% from current levels.
Interestingly, the team at Ord Minnett see a lot more value in this ASX 200 stock.
Although its analysts only have a hold rating on New Hope's shares, they have a lofty $5.90 price target on them. This suggests that a potential upside of over 20% is possible over the next 12 months.
