Understanding Repsol SA's Dividend Dynamics
Repsol SA (REPYY, Financial) recently announced a dividend of $0.44 per share, payable on 2024-01-18, with the ex-dividend date set for 2024-01-09. 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 Repsol SA's dividend performance and assess its sustainability.
What Does Repsol SA Do?
Repsol is a Spanish integrated oil and gas firm. In 2022, production was 550,000 barrels of oil equivalent a day (34% liquids), and proven reserves stood at 1.9 billion barrels of oil equivalent (33% oil). It also operates a downstream segment with refining capacity of 1.0 million barrels a day.
A Glimpse at Repsol SA's Dividend History
Repsol SA has maintained a consistent dividend payment record since 1989. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Repsol SA's Dividend Yield and Growth
As of today, Repsol SA currently has a 12-month trailing dividend yield of 5.06% and a 12-month forward dividend yield of 5.48%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Repsol SA's annual dividend growth rate was -29.20%. Extended to a five-year horizon, this rate increased to -15.50% per year. And over the past decade, Repsol SA's annual dividends per share growth rate stands at -6.70%.
Based on Repsol SA's dividend yield and five-year growth rate, the 5-year yield on cost of Repsol SA stock as of today is approximately 2.18%.
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. 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, Repsol SA's dividend payout ratio is 0.24.
Repsol SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Repsol SA's profitability 6 out of 10 as of 2023-09-30, 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. Repsol SA'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 Repsol SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Repsol SA's revenue has increased by approximately 21.10% per year on average, a rate that outperforms approximately 71.59% 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, Repsol SA's earnings increased by approximately 307.00% per year on average, a rate that outperforms approximately 98.23% of global competitors.
Concluding Insights on Repsol SA's Dividend Prospects
Repsol SA's commitment to shareholder returns is evident in its long history of dividend payments. The company's forward-looking dividend yield indicates a positive investor sentiment towards future dividend growth. However, the negative dividend growth rates over the past decade call for cautious optimism, as they reflect the volatile nature of the oil and gas industry. Despite this, Repsol SA's solid payout ratio and profitability rank, paired with impressive growth metrics, suggest a balanced approach to dividend sustainability. Investors considering Repsol SA for its dividend prospects should weigh these factors in the context of the broader economic and industry-specific challenges that may impact future performance.
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.
