Yahoo Finance Marathon Petroleum Corp's Dividend Analysis
Insights into Marathon Petroleum Corp's Upcoming Dividend and Financial Health
Marathon Petroleum Corp (NYSE:MPC) recently announced a dividend of $0.83 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-05-15. 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 Marathon Petroleum Corp's dividend performance and assess its sustainability.
What Does Marathon Petroleum Corp Do?
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Marathon Petroleum is an independent refiner with 13 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with total throughput capacity of 3.0 million barrels per day. Its Dickinson, North Dakota, facility produces 184 million gallons a year of renewable diesel. Its Martinez, California, facility will have the ability to produce 730 million gallons a year of renewable diesel once converted. The firm also owns and operates midstream assets primarily through its listed master limited partnership, MPLX.
A Glimpse at Marathon Petroleum Corp's Dividend History
Marathon Petroleum Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Marathon Petroleum Corp has increased its dividend each year since 2011. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Marathon Petroleum Corp's Dividend Yield and Growth
As of today, Marathon Petroleum Corp currently has a 12-month trailing dividend yield of 1.77% and a 12-month forward dividend yield of 1.86%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Marathon Petroleum Corp's annual dividend growth rate was 9.80%. Extended to a five-year horizon, this rate decreased to 9.10% per year. And over the past decade, Marathon Petroleum Corp's annual dividends per share growth rate stands at an impressive 14.00%.
Based on Marathon Petroleum Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Marathon Petroleum Corp stock as of today is approximately 2.74%.
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 2024-03-31, Marathon Petroleum Corp's dividend payout ratio is 0.16.
Marathon Petroleum Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Marathon Petroleum Corp's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Marathon Petroleum Corp'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 Marathon Petroleum Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Marathon Petroleum Corp's revenue has increased by approximately 50.00% per year on average, a rate that outperforms approximately 91.99% of global competitors.
Next Steps
Considering Marathon Petroleum Corp's consistent dividend payments, robust growth rate, manageable payout ratio, and strong profitability metrics, the company appears well-positioned to maintain or potentially increase its dividend payouts in the future. This makes it an attractive option for value investors focused on dividend income. For further analysis and to find other high-dividend yield opportunities, GuruFocus Premium users can use 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.
