Image source: Shutterstock

Highlights

  • Ex-Dividend Impact: New Hope Corporation shares fell on Monday as they went ex-dividend.
  • Strong Earnings Performance: The company reported a 35% rise in net profit to AU$340.3 million and a 22% increase in underlying EBITDA.
  • Dividend Growth: A fully franked interim dividend of 19 cents per share will be paid on 09 April 2025, with analysts forecasting a total FY25 yield of 8.8%.

Shares of coal miner New Hope Corporation Ltd (ASX:NHC) tumbled on Monday. However, the drop isn’t due to weakening coal prices or production concerns—it’s simply because the stock went ex-dividend.

Investors who buy shares from today onward will no longer be entitled to the company’s upcoming dividend payout. This technical adjustment often results in a price decline, reflecting the portion of the company’s valuation tied to its dividend distribution.

Last week, New Hope shares surged after the miner posted strong half-year results. The company reported a 32.9% increase in coal production to 5.4 million tonnes, which drove a 22% rise in underlying EBITDA to AU$517.3 million. Net profit after tax soared 35% to AU$340.3 million.

As a reward for its shareholders, New Hope announced a fully franked interim dividend of 19 cents per share, up 11.8% from last year’s 17 cents per share. This equates to an attractive 4.6% yield based on last week’s closing price, with an additional final dividend expected later this year.

What’s Next?
Eligible investors will receive their dividend payout on 9 April 2025. Analysts at Goldman Sachs anticipate another 19-cent fully franked final dividend in September, bringing total dividends for FY25 to 36 cents per share, representing an 8.8% dividend yield.

Goldman Sachs currently holds a sell rating on the stock with an AU$4.30 price target—which is now above its current trading price.