Advertisement
Canada markets closed
  • S&P/TSX

    22,690.39
    -36.37 (-0.16%)
     
  • S&P 500

    5,505.00
    -39.59 (-0.71%)
     
  • DOW

    40,287.53
    -377.49 (-0.93%)
     
  • CAD/USD

    0.7282
    -0.0016 (-0.22%)
     
  • CRUDE OIL

    80.25
    -2.57 (-3.10%)
     
  • Bitcoin CAD

    92,619.23
    +544.90 (+0.59%)
     
  • CMC Crypto 200

    1,387.88
    +56.98 (+4.28%)
     
  • GOLD FUTURES

    2,402.80
    -53.60 (-2.18%)
     
  • RUSSELL 2000

    2,184.35
    -13.94 (-0.63%)
     
  • 10-Yr Bond

    4.2390
    +0.0500 (+1.19%)
     
  • NASDAQ

    17,726.94
    -144.28 (-0.81%)
     
  • VOLATILITY

    16.52
    +0.59 (+3.70%)
     
  • FTSE

    8,155.72
    -49.17 (-0.60%)
     
  • NIKKEI 225

    40,063.79
    -62.56 (-0.16%)
     
  • CAD/EUR

    0.6690
    -0.0003 (-0.04%)
     

Enerplus Corp's Dividend Analysis

Exploring the Sustainability and Growth of Enerplus Corp's Dividends

Enerplus Corp (NYSE:ERF) recently announced a dividend of $0.32 per share, payable on 2024-06-04, with the ex-dividend date set for 2024-05-30. 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 Enerplus Corp's dividend performance and assess its sustainability.

What Does Enerplus Corp Do?

ADVERTISEMENT

Enerplus Corp produces and develops crude oil and natural gas assets in Canada and the United States. The majority of oil production is derived from the Williston basin, with the Marcellus providing a significant portion of natural gas production. Enerplus acquires the right to use assets through royalties paid to government entities, land owners, and mineral rights owners. Crude oil and natural gas are sold to customers in both countries where assets are held and can be sold either at the well or a fixed destination.

Enerplus Corp's Dividend Analysis
Enerplus Corp's Dividend Analysis

A Glimpse at Enerplus Corp's Dividend History

Enerplus Corp has maintained a consistent dividend payment record since 2000. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Enerplus Corp's Dividend Analysis
Enerplus Corp's Dividend Analysis

Breaking Down Enerplus Corp's Dividend Yield and Growth

As of today, Enerplus Corp currently has a 12-month trailing dividend yield of 1.23% and a 12-month forward dividend yield of 1.28%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Enerplus Corp's annual dividend growth rate was 38.70%. Extended to a five-year horizon, this rate decreased to 22.10% per year. And over the past decade, Enerplus Corp's annual dividends per share growth rate stands at -14.80%.

Based on Enerplus Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Enerplus Corp stock as of today is approximately 3.34%.

Enerplus Corp's Dividend Analysis
Enerplus Corp's Dividend Analysis

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, Enerplus Corp's dividend payout ratio is 0.13, suggesting that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. Enerplus Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Enerplus Corp's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Enerplus Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Enerplus Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Enerplus Corp's revenue has increased by approximately 41.00% per year on average, a rate that outperforms approximately 86.25% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Enerplus Corp's earnings increased by approximately 173.50% per year on average, a rate that outperforms approximately 96.69% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 45.20%, which outperforms approximately 91.97% of global competitors.

Next Steps

In conclusion, Enerplus Corp's robust dividend payments, impressive growth rate, manageable payout ratio, and strong profitability and growth metrics make it an attractive prospect for value investors focused on dividend income. With its consistent performance and strategic positioning in the energy sector, Enerplus Corp appears well-equipped to maintain its dividend payments and potentially enhance shareholder value in the future. Interested in discovering more high-dividend yield opportunities? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

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.

This article first appeared on GuruFocus.