Newmont sets ex-dividend date as dividend sustainability concerns loom

Investors eyeing dividends from Newmont Corporation (NYSE:NEM) should mark their calendars as the mining giant approaches its ex-dividend date on Tuesday, Nov 28. To secure eligibility for the dividend, shareholders must own shares before this crucial date. Following the ex-dividend date, the record date is set for Wednesday, Nov 29, where transactions occurring post-ex-dividend may not meet the eligibility for the record date.

The upcoming dividend payment is scheduled for Friday, Dec 22, at a rate of $0.40 per share. Despite offering an annual dividend sum of $1.60 per share with a yield of 4.2% based on the current share price of $37.69, Newmont’s dividend reliability is being questioned. The company’s dividends have outpaced its free cash flow by a significant 182%, raising flags about the sustainability of its payouts to shareholders.

This concern is compounded by a trend of declining earnings and dividends over time. Newmont has seen an average annual dividend decrease of 0.6% over the past decade, which poses a risk to long-term investors seeking steady income streams. To better understand Newmont’s financial health and the risks it may face, investors are turning to visualisation tools that provide a clearer picture of the company’s financial viability. These tools have highlighted two warning signs related to Newmont’s operations that could impact its ability to maintain current dividend levels in the future.

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