Everything you need to know about the monster Whitehaven dividend

happy miners looking at piece of iron ore in underground minehappy miners looking at piece of iron ore in underground mine

The Whitehaven Coal Ltd (ASX: WHC) share price is sinking on Thursday despite the declaration of a whopping interim dividend.

The company dropped its earnings for the first half this morning, as The Motley Fool Australia reports.

And within them, it revealed a 32 cents per share interim offering – marking a 300% increase on that of last year.

Right now, shares in the S&P/ASX 200 Index (ASX: XJO) coal producer are down 5.98%, trading at $7.70.

Let’s delve into all investors need to know about Whitehaven’s newly declared monster dividend.

Whitehaven share price slumps despite record interim dividend

The Whitehaven share price might not be reacting favourably, but investors are likely jumping for joy after learning of the company’s upcoming 32-cent per share payout.

It revealed the offering alongside a $1.78 billion net profit after tax (NPAT) – marking a 423% year-on-year improvement, and $2.65 billion of earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 319% jump.

That was helped by an average realised coal price of $553 a tonne – up from $202 a tonne in the prior comparable period, and a 4.8% increase in production.

It’s likely no surprise then that the company’s interim dividend comes fully franked.

The 32-cent per share offering is also the largest-ever interim dividend to be declared by Whitehaven.

It represents 16% of the company’s basic earnings per share (EPS), which came in at $1.989.

It’s also the second-largest ordinary dividend the coal producer has ever declared, bested only by the 40-cent per share final dividend it paid in September 2022.

Taking both dividends into account, Whitehaven boasts a 9.2% dividend yield at its current share price.

Key dates to keep in mind

Want-to-be-shareholders still have time to jump on board to receive the ASX 200 company’s interim offering. Whitehaven doesn’t trade ex-dividend until this time next week.

Anyone holding shares in the coal giant next Thursday will see the dividend hitting their accounts from 10 March.

The post Everything you need to know about the monster Whitehaven dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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