Want to land the outsized New Hope dividend? Here’s what you need to know

If you’re looking to cash in on the New Hope Corporation Limited (ASX: NHC) dividend, read on.

The S&P/ASX 200 Index (ASX: XJO) coal stock reported its half-year results yesterday.

And the board declared both a fully franked ordinary interim dividend as well as a special cash dividend, also fully franked at 30%.

Here’s the skinny.

What’s happening with the New Hope dividend?

On the back of surging coal prices, the miner reported some eye-popping results for the six months ending 31 January, enabling a generous dividend payout.

Highlights of those results included net profit after tax (NPAT) of $669 million. That was up a stellar 103% from the prior corresponding half-year period.

Net cash from operating activities surged even more, up 117% year on year to $984 million.

The very strong half-year enabled the New Hope board to declare a 30 cents per share ordinary dividend and a 10 cents per share special dividend.

At the current New Hope share price of $5.40, that works out to a forward yield (as this has yet to be paid) of 7.4%.

The coal miner also paid a final, fully franked dividend of 56 cents per share on 20 December.

Taken together with the 40 cents per share total interim dividend and that works out to 96 cents per share. Meaning New Hope shares offer a fully franked yield (partly trailing, partly forward) of 17.8%.

If you’d like to receive the 40 cents per share interim payout, be aware that New Hope trades ex-dividend on 17 April.

Eligible investors should receive that payout on 3 May.

New Hope share price snapshot

As you can see in the chart below, the New Hope share price, up 2% in morning trade today, has gained 71% over the past 12 months.

And remember, that’s just the share value appreciation. It doesn’t include the 96 cents of New Hope dividend payouts. Add that in (even without the franking tax benefits) and the ASX 200 coal miner’s full-year shareholder returns top 100%.

The post Want to land the outsized New Hope dividend? Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why Domino’s, Incitec Pivot, Mincor, and New Hope shares are racing higher
• New Hope share price rockets 6% as half-year profits double
• Guess which ASX 200 coal share just posted a 100% profit jump

Motley Fool contributor Bernd Struben 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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