Exploring the Sustainability and Growth of SFL Corp Ltd's Dividends
SFL Corp Ltd (SFL, Financial) recently announced a dividend of $0.27 per share, payable on 2024-06-26, with the ex-dividend date set for 2024-05-24. 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 SFL Corp Ltd's dividend performance and assess its sustainability.
What Does SFL Corp Ltd Do?
SFL Corp Ltd is an international ship owning and chartering company. The company is engaged primarily in the ownership and operation of vessels and offshore related assets and is also involved in the charter, purchase, and sale of assets. Its oil tankers, chemical tankers, and oil product tankers are all double-hull vessels.
A Glimpse at SFL Corp Ltd's Dividend History
SFL Corp Ltd has maintained a consistent dividend payment record since 2004, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down SFL Corp Ltd's Dividend Yield and Growth
SFL Corp Ltd currently has a 12-month trailing dividend yield of 6.95% and a 12-month forward dividend yield of 7.61%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, SFL Corp Ltd's annual dividend growth rate was -1.00%, decreasing to -10.00% per year over five years, and -6.80% over the past decade.
Based on SFL Corp Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of SFL Corp Ltd stock as of today is approximately 4.10%.
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. As of 2024-03-31, SFL Corp Ltd's dividend payout ratio is 1.04, which may suggest that the company's dividend may not be sustainable. However, SFL Corp Ltd's profitability rank of 7 out of 10, along with consistent net profit in 9 out of the past 10 years, suggests good profitability prospects.
Growth Metrics: The Future Outlook
SFL Corp Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Its strong revenue per share and 3-year revenue growth rate of 11.20% per year outperforms approximately 57.47% of global competitors. Additionally, SFL Corp Ltd's 3-year EPS growth rate and 5-year EBITDA growth rate further underline its capability to sustain dividends long-term.
Conclusion: Evaluating SFL Corp Ltd's Dividend Prospects
While SFL Corp Ltd shows a mixed picture with its dividend growth rates and payout ratio, its strong profitability and revenue growth provide a solid foundation for future dividend sustainability. Investors should consider these factors along with the company's growth metrics when evaluating the potential for ongoing dividend returns. For those interested in exploring further, GuruFocus Premium offers tools like the High Dividend Yield Screener to find high-yielding stocks.
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.
