Unraveling the Dividend Performance and Sustainability of Tsakos Energy Navigation Ltd
Tsakos Energy Navigation Ltd(TNP, Financial) recently announced a dividend of $0.4 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Tsakos Energy Navigation Ltd's dividend performance and assess its sustainability.
What Does Tsakos Energy Navigation Ltd Do?
Tsakos Energy Navigation Ltd is a seaborne transportation service provider for crude oil and petroleum products. The company's carriers cater to national and international independent oil companies and refiners. It generates revenue through charter contracts with its clients, which include time, bareboat, and voyage charters, contracts of affreightment, and pool arrangements.
A Glimpse at Tsakos Energy Navigation Ltd's Dividend History
Tsakos Energy Navigation Ltd has maintained a consistent dividend payment record since 2002. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Tsakos Energy Navigation Ltd's Dividend Yield and Growth
As of today, Tsakos Energy Navigation Ltd currently has a 12-month trailing dividend yield of 2.00% and a 12-month forward dividend yield of 2.68%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Tsakos Energy Navigation Ltd's annual dividend growth rate was -20.60%. Extended to a five-year horizon, this rate decreased to -33.20% per year. Over the past decade, Tsakos Energy Navigation Ltd's annual dividends per share growth rate stands at -19.30%.
Based on Tsakos Energy Navigation Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Tsakos Energy Navigation Ltd stock as of today is approximately 0.27%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into 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, Tsakos Energy Navigation Ltd's dividend payout ratio is 0.05.
Tsakos Energy Navigation Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Tsakos Energy Navigation Ltd's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Tsakos Energy Navigation Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Tsakos Energy Navigation Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Tsakos Energy Navigation Ltd's revenue has increased by approximately -3.20% per year on average, a rate that underperforms approximately 75.7% of global competitors.
Next Steps
Considering Tsakos Energy Navigation Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics, it is clear that the company has a mixed performance. While the company has maintained consistent dividend payments, the negative growth rate and underperforming revenue growth are areas of concern. However, the company's fair profitability and growth outlook suggest potential for improvement. Therefore, investors should monitor Tsakos Energy Navigation Ltd's performance and make informed decisions based on their investment goals and risk tolerance.
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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.
