A look at five dividend paying ASX gold stocks

Highlights:

• Gold has gained attention again after being weighed by rising interest rates last week.
• The Australian stock market has remained weak in the past few days.

While gold, and by extension ASX 200 gold shares, were weighed by rising interest rates last week, the yellow metal has recovered some losses so far this week. Gold has gained attention as the prices rose to US$1,650 per ounce.

Talking about equities, the Australian stock market has remained weak in the past few days. The benchmark index, ASX 200 closed lower on Monday, dropping 1.40% to 6,664.40 points. The index has reported a change of only 0.05% in the past five trading sessions.

In the past six months, it has fallen 11.91% and, dipping 0.83% in a month. In the past one year, it has declined 9.71%, and on a year-to-date basis, it has recorded a fall of 12.19%.

Here, we discuss five ASX gold stocks that have paid steady dividends in the past few years. The stocks discussed are Newcrest Mining Limited, Northern Star Resources Limited, Evolution Mining Limited, Perseus Mining Limited, and Gold Road Resources Limited.

Newcrest Mining Limited (ASX:NCM)

One of the world’s largest gold-mining company, Newcrest finds, develops, and operates copper and gold mines.

As per the company’s official website, the company targets a dividend payout of 30 to 60% of free cash flow. Reportedly, the company targets to maintain total dividend of a minimum of 15 cents (US$) per share in every financial year.

Recently, the company announced a final dividend of US 29 cents per share, which was paid on 29 September 2022. The dividend was 100% franked.

Before that, the Newcrest board determined to pay an interim dividend of AU$0.104 per share. In the full year 2021, the company distributed AU$0.745 apiece in dividends.

Newcrest last announced a final dividend of US 7.5 cents in the financial year 2016 (FY16).

Northern Star Resources Limited (ASX:NST)

Image source: © John1300 | Megapixl.com

Australian gold producer Northern Star manages a portfolio of underground and open-pit gold mines. According to the company’s official website, the company invests in building its assets via aggressive exploration and strategic acquisitions.

The dividend policy of this ASX-listed gold miner is to distribute 20 to 30% of cash earnings.

In the financial year 2022, the company announced a final dividend of 11.5 cents per share which was payable on 29 September 2022. The dividend was fully franked. In a statement, Norther Star highlighted that since FY12, it had returned around AU$1 billion cash to its shareholders.

The interim dividend during FY22 was AU$0.100 apiece. In FY21, the company’s board declared a final and interim dividend of AU$0.095 per share.

In FY20, the company announced the highest final dividend of AU$0.195 per share (in comparison to FY21 and 22 final dividends).

Evolution Mining Limited (ASX:EVN)

Evolution Mining is a gold miner. It operates five 100% owned mines, four in Australia and one in Canada.

The company introduced a revenue-linked dividend policy in 2013. Since that day, 19 consecutive dividends have been paid in each half-year. In 2017, the board introduced a change in dividend policy under which Evolution Mining would pay a half-yearly dividend of 50% of earnings after tax whenever possible. In 2019, the policy was further changed – paying dividends on the basis of free cash flow generated in a financial year (whenever possible).

There has been a continuous fall in the half-yearly dividend. In FY20, the company announced a dividend of AU$0.090 per share. In FY21, AU$0.070 per share of the interim dividend was distributed. In the same year, the final dividend was AU$0.050 per share. In FY22, the final and interim dividend amount was the same, that is, AU$0.030 per share.

Since the second half of 2017, Evolution Mining has been distributing fully franked dividends.

Perseus Mining Limited (ASX:PRU)

Growing African gold producer, Perseus manages three gold mines, one in Ghana and two in Cote d’Ivoire.

The aim of Perseus’s dividend policy is to reward its shareholders while focusing on its capacity and capital structure to fund the group’s growth. According to the ASX announcement, considering the FY22 performance, the company had announced a final dividend of AU$0.016 per share, equating to an annual yield of 1.5%. The dividend was paid on 12 October 2022.

The total return to shareholders through dividend payment was approximately AU$50 million. Reportedly, the maiden capital via capital reduction was circa AU$18 million, which was distributed on August 21. In FY22, the company paid an interim dividend of 0.81 cents per share, which was paid in March 2022. 

Image source: © Neillockhart | Megapixl.com

Gold Road Resources Limited (ASX:GOR)

Mid-tier gold explorer and producer Gold Road has Tier 1 exploration and mine projects in the north-eastern Goldfields of Western Australia. The company owns 50% of the Gruyere gold mine. The gold mine was developed under a joint venture with Gold Fields Ltd. The first gold was produced in June 2019.

The company targets dividend payment of 15-30% of free cash flow in a calendar year. The dividend is distributed through two half-yearly payments. According to the company’s website, the dividend announcement will be dependent upon the company’s intent to maintain a net cash balance of a minimum of AU$100 million (after dividend payment).

Gold Road announced a final dividend of AU$0.010 in 2022. It was distributed on 4 October 2022 and was fully franked. In May 2022, the company declared a dividend of AU$0.005 apiece. In FY21, the company announced a final and interim dividend of AU$0.005 apiece each. In FY20, a final dividend of AU$0.015 per share was distributed.