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Newmont Corporation (NYSE:NEM) will release its fourth-quarter financial results, after the closing bell, on Thursday, Feb. 20.
Analysts expect the Denver, Colorado-based company to report quarterly earnings at $1.04 per share, up from 50 cents per share in the year-ago period. Newmont projects quarterly revenue of $5.3 billion, compared to $3.96 billion a year earlier, according to data from Benzinga Pro.
On Jan. 27, Newmont finalized a $425 million deal to sell its Porcupine mine in Ontario to Discovery Silver (OTC:DSVSF), thus concluding its divestment from non-core assets.
With the recent buzz around Newmont, some investors may be eyeing potential gains from the company's dividends too. As of now, Newmont offers an annual dividend yield of 2.11%, which is a quarterly dividend amount of 25 cents per share ($1.00 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $284,460 or around 6,000 shares. For a more modest $100 per month or $1,200 per year, you would need $56,892 or around 1,200 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.00 in this case). So, $6,000 / $1.00 = 6,000 ($500 per month), and $1,200 / $1.00 = 1,200 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
NEM Price Action: Shares of Newmont fell 0.2% to close at $47.41 on Wednesday.
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