What You Need to Know to Understand Newmont Mining's Dividend History
Newmont Mining Corp (NYSE: NEM) investors were treated to a 50% dividend increase in September of 2017, three times the payment investors received in the third quarter of 2016. You might think that this giant gold miner was hitting on all cylinders based on that dividend news, but don't jump to conclusions so quickly. Newmont is doing OK, but the dividend increases are tied to something else. Here's what you need to know to understand Newmont Mining's dividend history.
Newmont's primary business is mining for gold. There are a few things that drive the business model, including the costs it incurs to look for, mine, and process gold -- but gold is a commodity, so the price it receives for the gold it sells is set by the market. And gold's value has a history of extreme, and sometimes sudden, price swings.
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Source: Fool.com