Assessing the Sustainability and Growth of Permian Resources Corp's Dividends
Permian Resources Corp (PR, Financial) recently announced a dividend of $0.12 per share, payable on 2023-11-28, with the ex-dividend date set for 2023-11-17. 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 look into Permian Resources Corp's dividend performance and assess its sustainability.
What Does Permian Resources Corp Do?
Permian Resources Corp is an independent oil and natural gas company focused on generating outsized returns to stakeholders through the responsible acquisition, optimization, and development of oil and liquids-rich natural gas assets.
A Glimpse at Permian Resources Corp's Dividend History
Permian Resources Corp has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since -, earning the prestigious title of a dividend king. This honor is given to companies that have increased their dividend each year for at least the past 2023 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Permian Resources Corp's Dividend Yield and Growth
As of today, Permian Resources Corp currently has a 12-month trailing dividend yield of 2.31% and a 12-month forward dividend yield of 3.72%. This suggests an expectation of increased dividend payments over the next 12 months. Permian Resources Corp's dividend yield of 2.31% is near a 10-year high and outperforms 23.88% of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Permian Resources Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Permian Resources Corp stock as of today is approximately 2.31%.
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 2023-09-30, Permian Resources Corp's dividend payout ratio is 0.34.
Permian Resources Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Permian Resources Corp's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 6 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. Permian Resources Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Permian Resources Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Permian Resources Corp's revenue has increased by approximately 24.60% per year on average, a rate that outperforms approximately 75.81% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Permian Resources Corp's earnings increased by approximately 116.00% per year on average, a rate that outperforms approximately 92.9% of global competitors.
Next Steps
Considering Permian Resources Corp's consistent dividend payments, growth in dividend rates, a moderate payout ratio, strong profitability, and impressive growth metrics, the company stands as a potentially compelling choice for value investors focused on dividend income. The data suggests that Permian Resources Corp not only provides a steady stream of income but also holds the potential for dividend growth and capital appreciation. Investors seeking to diversify their portfolios with income-generating assets should closely monitor Permian Resources Corp's financial health and market position. For those looking to discover similar investment opportunities, 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.
