Sales and EPS performance
Newmont Mining (NEM) noted a 10.3% sales growth in 2016 compared to an 11.0% fall in 2015. Gold sales in North America, Asia Pacific, and Africa, and copper sales in Asia Pacific drove its 2016 growth. That was offset by a fall in gold sales in South America and copper sales in North America. Every segment fell in 2015, but there was a 13.0% rise in the first half of 2017. Gold sales in North America, South America, and Africa, and copper sales in North America and Australia drove growth. It was offset by gold sales in Australia.
However, 2016 reported a 374.4% fall in EPS (earnings per share). Impairment of assets drove the fall. A fall of 58.0% in EPS was reported in 2015. Lower revenue drove that fall, offset by lower costs and expenses. The company’s interest expenses have also fallen. It also noted a 200% growth in EPS for the first half of 2017, driven by revenue growth and offset by higher costs and expenses. The company has generated enough free cash flow since 2014 to pay its dividends.
Dividend yield trajectory
Newmont Mining recorded a downward sloping dividend yield curve between 2015 and 2016. That was due to a dividend cut in 2015, offset by a fall in prices. However, the company noted an upward sloping dividend yield curve between 2016 and 2017. That was driven by an increase in dividends, offsetting the increase in price.
The company has a dividend yield of 0.80%, and its prices have risen 12.4% on a YTD (year-to-date) basis. That compares to a dividend yield of 2.3% and a YTD price gain of 15.2% for the Dow Jones Industrial Average (DJIA-INDEX) (DIA). The S&P 500 (SPX-INDEX) (SPY) has a dividend yield of 2.3% and a YTD price gain of 13.6%. The Nasdaq Composite (COMP-INDEX) (ONEQ) has a YTD price gain of 22.2%.
The WisdomTree US Total Dividend ETF (DTD) is a dividend ETF with exposure to Newmont Mining. The ETF has a 2.5% dividend yield and a PE (price-to-earnings) ratio of 20.5x. The WisdomTree US LargeCap Dividend ETF (DLN) is a dividend ETF with exposure to Newmont Mining. It has a 2.5% dividend yield and a PE ratio of 20.1x.