An Insightful Examination of FTCO's Dividend Performance and Sustainability
Fortitude Gold Corp(FTCO, Financial) recently announced a dividend of $0.04 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-10-18. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using GuruFocus data, we delve into Fortitude Gold Corp's dividend performance and evaluate its sustainability.
A Brief Overview of Fortitude Gold Corp
Fortitude Gold Corp is a mineral exploration and evaluation company that primarily explores gold and silver. Its primary focus is on developing the Isabella Pearl project, Golden Mile property, East Camp Douglas property, Mina Gold property, and County Line property.
Fortitude Gold Corp's Dividend History
Since 2021, Fortitude Gold Corp has maintained a consistent dividend payment record, with dividends currently distributed on a monthly basis. The chart below provides a glimpse into the company's annual Dividends Per Share for tracking historical trends.
Understanding Fortitude Gold Corp's Dividend Yield and Growth
As of today, Fortitude Gold Corp boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 7.90%, indicating an expectation of consistent dividend payments over the next 12 months. Furthermore, based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Fortitude Gold Corp stock as of today is approximately 7.90%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is determined by evaluating the company's payout ratio. The dividend payout ratio offers insights into the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, 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, suggesting potential concerns about the sustainability of the company's dividend.
Fortitude Gold Corp's profitability rank, as of 2023-06-30, is 5 out of 10, indicating fair profitability. The company has reported net profit in 3 out of the past 10 years.
Assessing Future Prospects: Growth Metrics
For a company to sustain its dividends, it must exhibit robust growth metrics. Fortitude Gold Corp's growth rank of 5 out of 10 suggests a fair growth outlook. Furthermore, the company's revenue per share and 3-year revenue growth rate indicate a strong revenue model. Fortitude Gold Corp's revenue has increased by approximately 69.60% per year on average, outperforming approximately 92.96% of global competitors.
Concluding Remarks
While Fortitude Gold Corp has demonstrated consistent dividend payments, its payout ratio and growth metrics raise some concerns regarding the sustainability of future dividends. Therefore, investors should carefully consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
