Assessing the Dividend Sustainability of Sandstorm Gold Ltd (SAND, Financial)
Sandstorm Gold Ltd(SAND) recently announced a dividend of $0.02 per share, payable on 2024-01-26, with the ex-dividend date set for 2024-01-16. 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 Sandstorm Gold Ltd's dividend performance and assess its sustainability.
What Does Sandstorm Gold Ltd Do?
Sandstorm Gold Ltd provides financing to companies engaged in gold mining through gold stream and royalty agreements. Geographically, the company has operational footprints in North America, South & Central America, Africa, and Asia & Australia. The firm's royalties include Hod Maden, Santa Elena, Chapada, and Cerro Moro.
A Glimpse at Sandstorm Gold Ltd's Dividend History
Sandstorm Gold Ltd has maintained a consistent dividend payment record since 2022, distributing dividends on a quarterly basis. While the company has a history of increasing its dividend, the exact duration of these increases is not provided. Tracking historical trends in dividends can help investors understand the company's commitment to returning value to shareholders.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sandstorm Gold Ltd's Dividend Yield and Growth
As of today, Sandstorm Gold Ltd currently has a 12-month trailing dividend yield of 1.18% and a 12-month forward dividend yield of 1.20%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Sandstorm Gold Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sandstorm Gold Ltd stock as of today is approximately 1.18%.
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. As of 2023-09-30, Sandstorm Gold Ltd's dividend payout ratio is 5.94, which may suggest that the company's dividend is sustainable given its low payout ratio.
Sandstorm Gold Ltd's profitability rank of 7 out of 10 suggests good profitability prospects. The company has reported net profit in 8 years out of the past 10 years, which is a positive sign for dividend sustainability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit robust growth metrics. Sandstorm Gold Ltd's growth rank of 7 out of 10 indicates a good growth trajectory relative to competitors.
With a strong revenue model indicated by an 11.70% average annual increase in revenue per share and a 3-year revenue growth rate, Sandstorm Gold Ltd's revenue performance outperforms approximately 50.25% of global competitors. Additionally, the company's 3-year EPS growth rate of 12.50% annually outperforms approximately 51.46% of global competitors. Finally, the 5-year EBITDA growth rate of 20.70% outperforms approximately 64.53% of global competitors, showcasing a strong potential for sustained dividend payments.
Concluding Thoughts on Sandstorm Gold Ltd's Dividend Outlook
In conclusion, Sandstorm Gold Ltd's consistent dividend payments, moderate yield, low payout ratio, and solid growth metrics paint a promising picture for current and prospective investors focused on dividend income. While past performance is not indicative of future results, the company's track record and financial health suggest that it is well-positioned to continue its dividend payments. Investors seeking to expand their portfolio with high-dividend yield stocks can utilize tools such as the High Dividend Yield Screener available to GuruFocus Premium users.
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.
