Yahoo Finance Petroleo Brasileiro SA Petrobras's Dividend Analysis
Exploring the Dividend Sustainability and Growth Prospects of Petroleo Brasileiro SA Petrobras (NYSE:PBR)
Overview of the Upcoming Dividend
Petroleo Brasileiro SA Petrobras (NYSE:PBR) recently announced a dividend of $0.41 per share, payable on an unspecified future date, with the ex-dividend date set for June 13, 2024. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this article will examine Petroleo Brasileiro SA Petrobras's dividend performance and evaluate its sustainability.
What Does Petroleo Brasileiro SA Petrobras Do?
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Petroleo Brasileiro SA Petrobras is a Brazil-based integrated energy company predominantly controlled by the Brazilian government. The company specializes in the exploration and production of oil and gas in Brazilian offshore fields. In 2023, it produced 2.8 million barrels of oil equivalent per day, with 80% attributed to oil. Its reserves stood at 10.9 billion barrels of oil equivalent, 85% of which was oil. By the end of 2023, Petroleo Brasileiro SA Petrobras operated 10 refineries in Brazil with a capacity of 1.8 million barrels a day, distributing refined products and natural gas throughout Brazil.
A Glimpse at Petroleo Brasileiro SA Petrobras's Dividend History
Since 2018, Petroleo Brasileiro SA Petrobras has maintained a consistent dividend payment record, with distributions occurring on a quarterly basis. Below is a chart illustrating the annual Dividends Per Share, which helps track historical trends.
Breaking Down Petroleo Brasileiro SA Petrobras's Dividend Yield and Growth
The current 12-month trailing dividend yield of Petroleo Brasileiro SA Petrobras stands at 11.21%, with a forward dividend yield of 10.74%, indicating an expected decrease in dividend payments over the next year. Over the past three years, the annual dividend growth rate was an impressive 212.70%, though it moderated to 146.50% over a five-year horizon. The 5-year yield on cost as of today is approximately 1,020.21%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, evaluating the company's payout ratio is essential. Petroleo Brasileiro SA Petrobras's dividend payout ratio is currently 0.48, suggesting a significant portion of earnings is retained for future growth and stability. The company's profitability rank is 7 out of 10, reflecting good profitability prospects, with net profit reported in 6 of the past 10 years.
Growth Metrics: The Future Outlook
The company's robust growth metrics are essential for sustaining dividends. Petroleo Brasileiro SA Petrobras's growth rank is 7 out of 10, indicating a strong trajectory compared to competitors. Its revenue per share and 3-year revenue growth rate of approximately 22.10% annually outperforms 56.83% of global competitors. Additionally, the 3-year EPS growth rate and 5-year EBITDA growth rate further underscore its capability to sustain dividends long-term.
Conclusion and Next Steps
The analysis of Petroleo Brasileiro SA Petrobras's dividend payments, growth rates, payout ratio, and profitability suggests a robust framework supporting its dividend sustainability. Investors considering this stock for its dividend prospects should also factor in these strong growth and profitability metrics. For further exploration of high-dividend yield stocks, GuruFocus Premium users can utilize 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.
