Assessing the Sustainability and Growth of SBM Offshore NV's Dividends
SBM Offshore NV (SBFFF, Financial) recently announced a dividend of $0.77 per share, payable on 2024-05-10, with the ex-dividend date set for 2024-04-15. 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 SBM Offshore NV's dividend performance and assess its sustainability.
What Does SBM Offshore NV Do?
SBM Offshore NV provides floating production solutions to the offshore energy industry, covering both hydrocarbon and renewable markets. Its core operations encompass the design, supply, installation, operation, and life extension of Floating Production Storage and Offloading (FPSO) vessels. The company is actively engaged in floating offshore wind, wave energy, and the research and development of pioneering products for future energy markets. With dedicated product lines for specific floating equipment and products such as Turret Mooring Systems (TMS) and offshore (off)loading Terminals, SBM Offshore NV operates through two primary segments: Lease and Operate, which includes day rates on operating lease and operate contracts, and Turnkey, which covers revenues from Turnkey supply contracts and after-sales services.
A Glimpse at SBM Offshore NV's Dividend History
SBM Offshore NV has a track record of consistent dividend payments since 2016, with distributions occurring on an annual basis. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down SBM Offshore NV's Dividend Yield and Growth
SBM Offshore NV currently boasts a 12-month trailing dividend yield of 6.79% and a 12-month forward dividend yield of 5.10%, indicating an expected decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was an impressive 15.10%, and this rate jumps to 36.80% when extended over a five-year period. Consequently, the 5-year yield on cost for SBM Offshore NV stock is approximately 32.53% as of today.
The Sustainability Question: Payout Ratio and Profitability
To gauge the sustainability of its dividends, we examine SBM Offshore NV's dividend payout ratio, which currently stands at 0.39. This ratio reflects the portion of earnings allocated to dividends, with a lower ratio indicating that the company retains a substantial part of its earnings for future growth and to buffer against downturns. Additionally, SBM Offshore NV's profitability rank is 8 out of 10, signaling strong profitability prospects. The company has reported net profit in 9 out of the past 10 years, further underlining its financial health.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the continuous support of dividend payments. SBM Offshore NV's growth rank of 8 suggests a favorable growth trajectory. The company's revenue per share and 3-year revenue growth rate have outperformed approximately 56.13% of global competitors. Moreover, SBM Offshore NV's 3-year EPS growth rate and 5-year EBITDA growth rate have outperformed 62.36% and 73.14% of global competitors, respectively.
Next Steps
Considering SBM Offshore NV's stable dividend payments, robust dividend growth rate, prudent payout ratio, strong profitability, and positive growth metrics, the company stands out as a potentially attractive option for value investors seeking stable income streams. While past performance is indicative of the company's commitment to shareholder returns, investors should also consider the broader industry trends and company-specific factors that could influence future dividend sustainability. Value investors may find it worthwhile to further explore SBM Offshore NV's financial health and strategic positioning within the energy sector.
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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.
