Passive income investors received some welcome news on Tuesday in the form of a big lift in the New Hope Corp Ltd (ASX: NHC) dividend.
Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed up 8.9% on 18 March, the day the company reported its half-year results.
Currently trading at $4.22, the New Hope share price has surged 15.0% over the past five trading days. Shares remain down 10% over a year, not including dividends.
Now, if you're hoping to grab the boosted New Hope dividend, time is running short.
Here's what you need to know.
With both coal production levels and earnings surging year on year, New Hope achieved a 35% increase in net profit after tax (NPAT) for the six months to $340.3 million.
Investors also reacted positively to management's announcement of an on-market share buyback of up to $100 million as part of the ASX 200 miner's capital management program.
Commenting on the strong half-year results and the New Hope dividend on Tuesday, CEO Rob Bishop said:
As a result of this performance, we are able to return value to shareholders by way of a fully franked interim dividend of 19.0 cents per ordinary share. In addition, we are pleased to announce the start of an on-market share buy-back of up to $100 million.
That 19 cents per share dividend is up 11.8% from last year's interim dividend.
At the current New Hope share price, the interim dividend represents a pending yield of 4.5%. Or 6.4% grossed up with those franking credits.
Adding in the 22 cents per share final dividend, paid out on 24 October, New Hope shares trade on a 9.7% fully franked dividend yield (partly trailing, partly pending).
So, how much time do you have if you want to bank the New Hope dividend?
Well, the ASX 200 coal stock trades ex-dividend on Monday, 24 March. That means you'll need to own shares at market close tomorrow, Friday, 21 March.
You can then expect to receive that passive income payout on 9 April.
As for the outlook for future franking credits from the New Hope dividend, the miner stated:
The company has franking credits available for distribution and its current intention is to maintain payment of fully franked dividends as a core component of its capital management strategy.
Looking ahead, New Hope maintained its full-year guidance of run of mine (ROM) coal production of 15,480,000 to 17,000,000 tonnes and coal sales of 10,660,000 to 11,750,000 tonnes.
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