In a piece of news sure to excite precious metals investors, gold mining giant Newmont Mining Corp (NYSE:NEM) today announced a first-of-its “enhanced” quarterly dividend tied to the price of gold.
The Greenwood Village, Colorado-based company also doubled its regular quarterly dividend payout to $0.05 per , up from $0.025 per share.
The “enhanced” dividend, which comes in addition to its regular dividend, will be based on the average LBMA P.M. Gold Price for the preceding quarter. The policy will pay out as follows:
NEM said via press release:
“We’re also confident in our ability to generate free cash flow at reduced prices, and have raised our payout at lower levels as well. This new policy has the potential to increase dividend payout levels by more than 100 percent beginning in the first quarter of 2017, in keeping with our strategy to create shareholder value.”
Newmont Mining shares plunged following the news today, down $0.93 (-2.57%) to $35.25 in after-hours trading. Prior to today’s news, NEM had risen 101% year-to-date, making it one of the top performing large cap stocks of the year.