Exploring the Sustainability and Growth of Fortitude Gold Corp's Dividend
Fortitude Gold Corp (FTCO, Financial) recently announced a dividend of $0.04 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-18. The upcoming payment has drawn attention to the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's deep dive into Fortitude Gold Corp's dividend performance and assess its sustainability.
What Does Fortitude Gold Corp Do?
Fortitude Gold Corp is a mineral exploration and evaluation company primarily focusing on gold and silver exploration. The company's key projects include the Isabella Pearl project, Golden Mile property, East Camp Douglas property, Mina Gold property, and County Line property.
A Glimpse at Fortitude Gold Corp's Dividend History
Since 2021, Fortitude Gold Corp has consistently distributed dividends on a monthly basis. The chart below shows the company's annual Dividends Per Share for historical trend tracking.
Breaking Down Fortitude Gold Corp's Dividend Yield and Growth
As of today, Fortitude Gold Corp has a 12-month trailing dividend yield and a 12-month forward dividend yield of 7.89%. This indicates an expectation of consistent dividend payments over the next 12 months. Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Fortitude Gold Corp stock is approximately 7.89% as of today.
The Sustainability Question: Payout Ratio and Profitability
To gauge the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio indicates the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Fortitude Gold Corp's dividend payout ratio is 0.75, which may suggest that the company's dividend may not be sustainable.
Fortitude Gold Corp's profitability rank, as of 2023-06-30, is 5 out of 10, suggesting fair profitability. The company has reported net profit in 3 years out of the past 10 years.
Growth Metrics: The Future Outlook
For a company to sustain its dividends, robust growth metrics are essential. Fortitude Gold Corp's growth rank of 5 out of 10 suggests a fair growth outlook. Furthermore, Fortitude Gold Corp's revenue per share combined with the 3-year revenue growth rate indicates a strong revenue model. The company's revenue has increased by approximately 69.60% per year on average, a rate that outperforms approximately 93.23% of global competitors.
Conclusion
Given Fortitude Gold Corp's consistent dividend payments, impressive yield, and robust growth metrics, it presents an attractive option for dividend-focused investors. However, its relatively high payout ratio might raise sustainability concerns. Therefore, investors should continue to monitor these factors to make informed investment decisions.
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