A Comprehensive Review of Upcoming Dividends and Historical Performance
Petroleo Brasileiro SA Petrobras (PBR, Financial) recently announced a dividend of $0.68 per share, payable on an unannounced future date, with the ex-dividend date set for 2024-05-03. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis utilizes data from GuruFocus to evaluate the dividend performance of Petroleo Brasileiro SA Petrobras and assess its sustainability.
What Does Petroleo Brasileiro SA Petrobras Do?
Petroleo Brasileiro SA Petrobras is a Brazil-based integrated energy company primarily controlled by the Brazilian government. The company is engaged in the exploration and production of oil and gas in offshore fields located in Brazil. In 2023, its production was reported at 2.8 million barrels of oil equivalent per day, with 80% attributed to oil production. The company also reported reserves of 10.9 billion boe, with 85% being oil. At the end of 2023, Petroleo Brasileiro SA Petrobras operated 10 refineries in Brazil with a capacity of 1.8 million barrels per day and distributed refined products and natural gas throughout the country.
A Glimpse at Petroleo Brasileiro SA Petrobras's Dividend History
Petroleo Brasileiro SA Petrobras has maintained a consistent dividend payment record since 2018, with dividends distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Petroleo Brasileiro SA Petrobras's Dividend Yield and Growth
Petroleo Brasileiro SA Petrobras currently boasts a 12-month trailing dividend yield and a forward dividend yield of 13.02%, indicating stable dividend expectations over the next year. Over the past three years, the annual dividend growth rate was an impressive 212.80%, although this rate moderated to 145.40% over a five-year period. The 5-year yield on cost for Petroleo Brasileiro SA Petrobras stock is approximately 1,158.73%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio of Petroleo Brasileiro SA Petrobras, which stands at 0.77 as of 2023-12-31, suggests that the company retains a significant portion of its earnings, potentially supporting future growth and resilience against downturns. However, this ratio also raises questions about the sustainability of current dividend levels. The company's profitability rank is 8 out of 10, reflecting strong earnings potential relative to its peers.
Growth Metrics: The Future Outlook
Petroleo Brasileiro SA Petrobras's robust growth metrics are crucial for sustaining its dividends. The company's growth rank is 8 out of 10, indicating a positive growth trajectory. Its revenue per share and 3-year revenue growth rate of approximately 21.30% per year outperform about 58.89% of global competitors. Additionally, the 3-year EPS growth rate and 5-year EBITDA growth rate further underscore its ability to sustain dividends.
Conclusion: Evaluating Dividend Sustainability
Considering Petroleo Brasileiro SA Petrobras's consistent dividend payments, robust growth rates, and substantial payout ratio, the company appears well-positioned to maintain its dividend payouts. However, investors should continue to monitor these metrics closely, given the dynamic nature of the global energy market. For those looking to explore more high-dividend yield opportunities, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
