It declared a quarterly dividend of US55c per share, a 38% increase on the previous quarter's dividend of 40c.
It follows Rio Tinto this week declaring its biggest dividend ever, a record final ordinary dividend of $3.09 per share plus a 93c special dividend, and BHP also declaring a record interim dividend of $1.01 per share.
Newmont said its increase was supported by a framework to return 40-60% of incremental attributable free cash flow to shareholders that was generated above a $1,200 per ounce gold price.
For the fourth quarter, the dividend increase was based on an $1,800/oz gold price assumption and a 40% payout ratio applied to the previously articulated $1.2 billion incremental free cash flow for every $300/oz change in the gold price, Newmont said.
"We are pleased to continue delivering industry-leading returns through the highest dividend in the gold sector at an annualised payout of $2.20 per share and a dividend yield of over 3.5%," president and CEO Tom Palmer said.
"Our dividend framework provides shareholders with a sustainable base dividend and the ability to directly benefit from Newmont's significant free cash flow generation at higher gold prices."
The gold price reached a record above $2,000/oz in August but has since softened to below $1,800/oz this week.
Newmont said its base annualized dividend remained at $1 per share and was sustainable at a $1,200/oz gold price.
The company is due to release its full 2020 and fourth quarter results later today, as is peer Barrick Gold.
Newmont shares have ranged from $33-$72.22 over the past year and closed down 1.4% in New York, valuing it about $46 million.