Exploring the Dividend History, Yield, and Growth of Hunting PLC (HNTIF, Financial)
Hunting PLC(HNTIF) recently announced a dividend of $0.05 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-05. 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 deep dive into Hunting PLC's dividend performance and assess its sustainability.
Introducing Hunting PLC
Hunting PLC manufactures and distributes products that enable the extraction of oil and gas. The company has a client base that includes many of the world's international oil and gas companies. Primary product lines include well construction, well completion, and well intervention. Well completion activities provide Hunting with the most revenue of the three segments. Products provided by this segment include connection technologies that protect the wellbore from annular pressure buildup, drilling tools, and a host of other tools for oil and gas well completions.
Understanding Hunting PLC's Dividend History
Hunting PLC has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Hunting PLC's Dividend Yield and Growth
As of today, Hunting PLC currently has a 12-month trailing dividend yield of 2.37% and a 12-month forward dividend yield of 2.63%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Hunting PLC's annual dividend growth rate was -2.70%. Based on Hunting PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Hunting PLC stock as of today is approximately 2.37%.
Assessing Dividend Sustainability: 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, Hunting PLC's dividend payout ratio is 0.98, suggesting that the company's dividend may not be sustainable.
Hunting PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hunting PLC's profitability 3 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Examining Growth Metrics for Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hunting PLC's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Hunting PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hunting PLC's revenue has increased by approximately -6.80% per year on average, a rate that underperforms than approximately 80.33% of global competitors.
Concluding Thoughts
While Hunting PLC has consistently paid dividends since 2018, its dividend growth rate, payout ratio, and growth metrics suggest that the sustainability of its dividend is questionable. Investors should closely monitor these factors and consider their potential impact on future dividend payments. As always, a comprehensive understanding of a company's financial health and strategic initiatives is crucial in making informed investment decisions.
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