Exploring the Dividend Profile of Nickel Industries Ltd
Nickel Industries Ltd (NICMF, Financial) recently announced a dividend of $0.03 per share, payable on 2024-02-19, with the ex-dividend date set for 2024-02-02. 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 Nickel Industries Ltd's dividend performance and assess its sustainability.
What Does Nickel Industries Ltd Do?
Nickel Industries Ltd is engaged in acquiring, exploring, and developing nickel projects. It holds 80% interest in the Hengjaya Nickel and Ranger Nickel projects, both of which operate 2 line Rotary Kiln Electric Furnace (RKEF) plants producing NPI within the Indonesia Morowali Industrial Park (IMIP). Nickel Industries also holds an 80% economic interest in the Hengjaya Mineralindo Nickel Mine ('Hengjaya Mine'), a large tonnage, high-grade saprolite deposit located in the Morowali Regency of Central Sulawesi, Indonesia.
A Glimpse at Nickel Industries Ltd's Dividend History
Nickel Industries Ltd has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nickel Industries Ltd's Dividend Yield and Growth
As of today, Nickel Industries Ltd currently has a 12-month trailing dividend yield of 5.33% and a 12-month forward dividend yield of 6.66%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Nickel Industries Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Nickel Industries Ltd stock as of today is approximately 5.33%.
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 2023-06-30, Nickel Industries Ltd's dividend payout ratio is 0.82, which may suggest that the company's dividend could be at risk.
Nickel Industries Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nickel Industries Ltd's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 4 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. Nickel Industries Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Nickel Industries Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Nickel Industries Ltd's revenue has increased by approximately 114.70% per year on average, a rate that outperforms approximately 97.6% 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, Nickel Industries Ltd's earnings increased by approximately 9.00% per year on average, a rate that outperforms approximately 47.28% of global competitors.
Concluding Thoughts on Nickel Industries Ltd's Dividend Profile
Considering Nickel Industries Ltd's consistent dividend payments, current yield expectations, and growth metrics, investors may find the stock to be an attractive option for dividend income. However, the payout ratio raises questions regarding long-term sustainability. It's essential for investors to weigh these factors against their investment strategy and risk tolerance. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a High Dividend Yield Screener to discover similar investment opportunities.
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.
