ASX resources shares of many shapes and stripes have been at the centre of ASX investors’ radars the last few months. Record commodity prices have boosted many mining shares. But investors are also expecting big things from the companies that have seen the resources they mine skyrocket in value. A case in point is the New Hope Corporation Limited (ASX: NHC) share price.
New Hope is one of the largest pure-play coal mining shares on the S&P/ASX 200 Index (ASX: XJO). It owns extensive coal assets, including large-scale open-cut mines in the Hunter Valley in New South Wales, as well as the Darling Downs in Queensland.
Like many other commodities, coal prices have shot through the roof in 2022 so far. That has boosted the prospects of New Hope, which has seen its own shares rise 75% in 2022 alone.
New Hope to pay out monster dividend next month
Last month, New Hope released its half-year results for the six months ending 31 January 2022. While reporting a 153% rise in revenues, and an extraordinary 582% boost to underlying earnings, New Hope also announced an interim dividend of 17 cents per share, fully franked. That was up a pleasing 325% on last year’s interim payout of 4 cents.
But in addition, New Hope also announced a special dividend. This is worth another 13 cents per share. And also comes fully franked. That means investors have a monster 30 cents per share dividend coming their way soon. How soon?
Well, these two New Hope dividends will be paid out next month on 5 May. But investors will have until this Thursday (14 April) to opt in for this shareholder payment. That’s the date that the shares trade ex-dividend for both the ordinary and special dividends. So any shareholder who buys New Hope shares on or after that date will miss out on this latest dividend.
These two payments alone would be worth a yield of 7.51% on current pricing, or a whopping 10.74% grossed-up with full franking. When this dividend gets paid, the New Hope share price will have a trailing 12-month yield of 9.27%. That’s 13.24% grossed-up.
The post Hoping to bag the monster New Hope dividend? Read this appeared first on The Motley Fool Australia.
Should you invest $1,000 in New Hope right now?
Before you consider New Hope, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and New Hope wasn’t one of them.
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*Returns as of January 13th 2022
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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