Unpacking the Dividend Profile of Ampol Ltd
Ampol Ltd (CTXAY, Financial) recently announced a dividend of $2.36 per share, payable on 2024-04-11, with the ex-dividend date set for 2024-03-01. 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 Ampol Ltd's dividend performance and assess its sustainability.
Understanding Ampol Ltd's Business Model
Ampol Ltd, formerly known as Caltex, is the largest and only Australian-listed petroleum refiner and distributor, with operations spanning all states and territories. After Chevron divested its 50% stake in 2015, the company rebranded to Ampol, reflecting a strategic pivot from refining to focusing on the more lucrative distribution and retail segments. With a heritage stretching over a century, Ampol has demonstrated resilience and adaptability, recently expanding its footprint with a NZD 2.0 billion acquisition of New Zealand's Z Energy in the first half of 2022.
Ampol Ltd's Dividend Track Record
Ampol Ltd has upheld a steady dividend payment track record since 2011, distributing dividends bi-annually. This consistent performance is a testament to the company's commitment to returning value to shareholders. For a visual perspective on Ampol Ltd's dividend consistency, here is a chart illustrating the annual Dividends Per Share, allowing investors to track historical trends.
Assessing Ampol Ltd's Dividend Yield and Growth Prospects
As of today, Ampol Ltd boasts a 12-month trailing dividend yield of 5.16% and a forward-looking 12-month forward dividend yield of 7.00%. This forward yield implies an anticipated increase in dividend payments over the next year, signaling potential growth in shareholder returns.
Further, the 5-year yield on cost for Ampol Ltd stock stands at approximately 5.16%, reflecting the yield an investor would receive if they had purchased the stock five years ago.
Evaluating the Sustainability of Ampol Ltd's Dividend
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 2023-06-30, Ampol Ltd's dividend payout ratio is 3.36, which may raise concerns about the dividend's sustainability.
Ampol Ltd's profitability rank is currently 4 out of 10, suggesting that its earnings might not be as robust as some peers, potentially impacting its ability to maintain dividend payments. However, the company has reported net profit in 9 out of the past 10 years, indicating some level of financial stability.
Prospective Growth Metrics and Dividend Viability
For dividends to be sustainable, a company must exhibit strong growth metrics. Ampol Ltd's growth rank of 4 out of 10 reflects limited growth prospects, which could affect the company's ability to sustain its dividend payments in the long term.
Concluding Thoughts on Ampol Ltd's Dividend Outlook
While Ampol Ltd's dividend history has been consistent, the current payout ratio, profitability rank, and growth metrics present a mixed picture for its dividend sustainability. Investors should weigh these factors alongside their investment goals and consider the company's recent strategic moves, such as its expansion in New Zealand. For those seeking dividend-paying stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover opportunities that align with high-dividend yield strategies.
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.
