Exploring the Sustainability and Growth of Centerra Gold Inc's Dividends
Centerra Gold Inc (CGAU, Financial) recently announced a dividend of $0.07 per share, payable on 2024-06-12, with the ex-dividend date set for 2024-05-28. 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 delve into Centerra Gold Inc's dividend performance and assess its sustainability.
What Does Centerra Gold Inc Do?
Centerra Gold Inc is a gold mining and exploration company engaged in the operation, exploration, development, and acquisition of gold properties in Asia, North America, and other markets worldwide. The company manages its reportable operating segments by a combination of geographic location and products. The Kyrgyz Republic segment includes the operations of the Kumtor Gold Project. The Turkish segment represents the development of the OksUt Project. The North America Gold-Copper segment represents the operations of the Mount Milligan Mine. The North America Molybdenum segment includes the operations of the Langeloth processing facility and the care and maintenance activities of the Endako and Thompson Creek Mines.
A Glimpse at Centerra Gold Inc's Dividend History
Centerra Gold Inc has maintained a consistent dividend payment record since 2020, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Centerra Gold Inc's Dividend Yield and Growth
As of today, Centerra Gold Inc currently has a 12-month trailing dividend yield of 2.95% and a 12-month forward dividend yield of 2.92%, suggesting an expectation of stable dividend payments over the next 12 months. Over the past three years, Centerra Gold Inc's annual dividend growth rate was 17.40%. Based on Centerra Gold Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Centerra Gold Inc stock as of today is approximately 2.95%.
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, Centerra Gold Inc's dividend payout ratio is 0.37, indicating a healthy balance between paying dividends and retaining earnings for growth. Additionally, Centerra Gold Inc's profitability rank of 6 out of 10 suggests fair profitability, with the company reporting net profit in 5 out of the past 10 years.
Growth Metrics: The Future Outlook
Ensuring the sustainability of dividends requires robust growth metrics. Centerra Gold Inc's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate of 29.40% per year on average outperforms approximately 82.49% of global competitors. However, the 3-year EPS growth rate and 5-year EBITDA growth rate indicate challenges, with rates of -39.00% and -31.70% respectively, suggesting areas for potential improvement.
Conclusion: Assessing Dividend Reliability and Growth Prospects
Centerra Gold Inc's consistent dividend payments, combined with a healthy payout ratio and fair profitability, provide a solid foundation for dividend sustainability. However, the mixed growth metrics highlight the importance of strategic improvements to ensure long-term dividend growth. Investors should monitor these factors closely to make informed decisions about the potential risks and rewards associated with investing in Centerra Gold Inc. For further analysis and high-dividend yield opportunities, consider exploring 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.
