Yahoo Finance Galp Energia SGPS SA's Dividend Analysis
An In-depth Look at Galp Energia SGPS SA's Upcoming Dividend and Historical Performance
Galp Energia SGPS SA (GLPEY) recently announced a dividend of $0.15 per share, payable on June 17, 2024, with the ex-dividend date set for June 3, 2024. 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 Galp Energia SGPS SA's dividend performance and assess its sustainability.
What Does Galp Energia SGPS SA Do?
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Galp Energia SGPS SA is an integrated operator with business lines spanning from exploration and production to refining and marketing of oil products. Its operating segments include Upstream, Industrial and Midstream, Commercial and Renewables, and New Businesses. The Upstream segment involves the management of all activities relating to the exploration, development, and production of hydrocarbons. The Industrial & Midstream segment operates the Sines industrial site in Portugal, which includes all current refining activities, The Commercial segment encompasses the area of retail to final B2B and B2C customers of oil, gas, electricity, and convenience. The Renewables & New Businesses segment represents Galp's presence in the renewable and new energies space.
A Glimpse at Galp Energia SGPS SA's Dividend History
Galp Energia SGPS SA has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Galp Energia SGPS SA's Dividend Yield and Growth
As of today, Galp Energia SGPS SA currently has a 12-month trailing dividend yield of 2.67% and a 12-month forward dividend yield of 2.73%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Galp Energia SGPS SA's annual dividend growth rate was 11.30%. Extended to a five-year horizon, this rate decreased to -2.30% per year. And over the past decade, Galp Energia SGPS SA's annual dividends per share growth rate stands at 6.30%.
Based on Galp Energia SGPS SA's dividend yield and five-year growth rate, the 5-year yield on cost of Galp Energia SGPS SA stock as of today is approximately 2.38%.
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. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of March 31, 2024, Galp Energia SGPS SA's dividend payout ratio is 0.28. Galp Energia SGPS SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Galp Energia SGPS SA's profitability 7 out of 10 as of March 31, 2024, suggesting good profitability prospects. The company has reported net profit in 8 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. Galp Energia SGPS SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Galp Energia SGPS SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Galp Energia SGPS SA's revenue has increased by approximately 24.10% per year on average, a rate that outperforms approximately 61.93% of global competitors.
In conclusion, Galp Energia SGPS SA's consistent dividend payments, alongside a robust growth in revenue and a solid profitability track record, make it an attractive option for dividend-seeking investors. With the upcoming dividend date approaching, it may be a prudent time to consider this stock for those looking to enhance their investment portfolio. How will these factors influence your investment decisions?
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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.
This article first appeared on GuruFocus.
