Assessing the Sustainability and Growth of NewMed Energy LP's Dividends
NewMed Energy LP (DKDRF, Financial) recently announced a dividend of $0.04 per share, payable on 2023-12-21, with the ex-dividend date set for 2023-11-27. 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 NewMed Energy LP's dividend performance and assess its sustainability.
What Does NewMed Energy LP Do?
NewMed Energy LP is engaged in the exploration, development, and production of oil, condensate, and natural gas. It mainly markets fuel products across Israel and holds interests in several significant gas findings in the Mediterranean Sea region, which include, the Tamar finding, Leviathan finding, and Aphrodite finding in Cyprus.
A Glimpse at NewMed Energy LP's Dividend History
NewMed Energy LP has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down NewMed Energy LP's Dividend Yield and Growth
As of today, NewMed Energy LP currently has a 12-month trailing dividend yield of 7.19% and a 12-month forward dividend yield of 7.19%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, NewMed Energy LP's annual dividend growth rate was 8.70%. Extended to a five-year horizon, this rate decreased to 2.90% per year. Based on NewMed Energy LP's dividend yield and five-year growth rate, the 5-year yield on cost of NewMed Energy LP stock as of today is approximately 8.29%.
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, NewMed Energy LP's dividend payout ratio is 0.44.
NewMed Energy LP's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NewMed Energy LP's profitability 9 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NewMed Energy LP's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and NewMed Energy LP's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NewMed Energy LP's revenue has increased by approximately 554.40% per year on average, a rate that outperforms approximately 99.65% of global competitors.
Engaging Conclusion
In conclusion, NewMed Energy LP (DKDRF, Financial) exhibits a strong dividend profile characterized by a stable history, an attractive yield, and growth rates that promise rewarding returns for investors. The company's prudent payout ratio and high profitability rank underscore the sustainability of its dividends. Coupled with impressive growth metrics, NewMed Energy LP stands as a potentially lucrative option for value investors seeking income-generating assets. Will NewMed Energy LP's strategic initiatives and market position enable it to continue its dividend legacy? For investors seeking to diversify their portfolio with dividend stocks, 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.
