Understanding Barrick Gold Corp's Dividend Dynamics
Barrick Gold Corp(GOLD, Financial) recently announced a dividend of $0.10 per share, payable on March 15, 2024, with the ex-dividend date set for February 28, 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 look into Barrick Gold Corp's dividend performance and assess its sustainability.
What Does Barrick Gold Corp Do?
Based in Toronto, Barrick Gold is one of the world's largest gold miners. In 2023, the firm produced nearly 4.1 million attributable ounces of gold and about 420 million pounds of copper. At the end of 2023, Barrick had about two decades of gold reserves along with significant copper reserves. After buying Randgold in 2019 and combining its Nevada mines in a joint venture with competitor Newmont later that year, it operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia. The company also has growing copper exposure. Its potential Reko Diq project in Pakistan, if developed, could double copper production by the end of the decade.
A Glimpse at Barrick Gold Corp's Dividend History
Barrick Gold Corp has maintained a consistent dividend payment record since 1987, currently distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Barrick Gold Corp's Dividend Yield and Growth
As of today, Barrick Gold Corp boasts a 12-month trailing dividend yield of 2.73% and a forward dividend yield of 2.73%, indicating an expectation of consistent dividend payments over the next 12 months. Over the past three years, Barrick Gold Corp's annual dividend growth rate was 10.60%. This rate increased to 32.30% per year over a five-year horizon. Looking at the past decade, the annual dividends per share growth rate stands at an impressive 10.70%. Based on Barrick Gold Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Barrick Gold Corp stock as of today is approximately 11.07%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. Barrick Gold Corp's dividend payout ratio is currently 0.53, suggesting a balance between distributing earnings to shareholders and retaining funds for future growth and downturns. Furthermore, Barrick Gold Corp's profitability rank is 7 out of 10, indicating good profitability prospects with net profit reported in 7 out of the past 10 years.
Growth Metrics: The Future Outlook
Barrick Gold Corp's growth rank of 7 out of 10 suggests a good growth trajectory relative to competitors. However, the company's revenue has seen an average annual decrease of 1.30%, underperforming approximately 76.5% of global competitors. Additionally, the 3-year EPS growth rate shows an average annual decrease of 12.10%, underperforming approximately 70.34% of global competitors. These figures highlight areas where Barrick Gold Corp may need to focus to ensure the sustainability of their dividends.
Next Steps
In conclusion, Barrick Gold Corp's consistent dividend payments, robust dividend growth rate, balanced payout ratio, and solid profitability rank it as a potentially attractive option for income-seeking investors. However, the company's underwhelming revenue and EPS growth rates suggest a need for strategic initiatives to bolster its financial performance and sustain its dividend payouts. Value investors considering Barrick Gold Corp should weigh these factors and monitor the company's future growth prospects and market conditions. For further research on 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.
