Dividend Growth Of Newmont Mining: A Story Of Rising Costs And Declining Production

Although gold prices increased recently and a majority of the analysts interviewed by Bloomberg remain bullish on the commodity in the short term, we have a neutral rating on Newmont Mining Corporation (NEM). We believe the company has a strong base of operations but the rising costs, particularly at its APAC operations, and declining production remain as concerns for NEM.

NEM is trading at a forward P/E of 9.7x. The stock has a dividend yield of 2.90 per cent that is attractive to dividend seeking investors. The stock has lost 21 per cent of its value YTD. The stock has a mean recommendation of 2.6. Out of 22 sell side analysts, 13 have a hold recommendation, 8 buy, and 1 strong buy whereas none has a sell recommendation. Read more