Assessing the Upcoming Dividend and Company Fundamentals
Mineral Resources Ltd (MALRY, Financial) recently announced a dividend of $0.13 per share, payable on 2024-04-10, with the ex-dividend date set for 2024-03-01. 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 Mineral Resources Ltd's dividend performance and evaluate its sustainability.
What Does Mineral Resources Ltd Do?
Mineral Resources Ltd, listed on the ASX in 2006, emerged from the merger of three mining services businesses. The company's operations are spearheaded by Chris Ellison, managing director and significant shareholder. With a focus on iron ore and lithium mining, Mineral Resources Ltd also offers crushing and screening services and engineering and construction for the mining sector, primarily in Western Australia.
A Glimpse at Mineral Resources Ltd's Dividend History
Mineral Resources Ltd has a track record of consistent dividend payments since 2012, with distributions occurring bi-annually. The company has been increasing its dividend each year since -, earning it the prestigious title of dividend king, a distinction reserved for companies with at least 2024 consecutive years of dividend growth.
Below is a chart illustrating the historical trend of annual Dividends Per Share.
Breaking Down Mineral Resources Ltd's Dividend Yield and Growth
Mineral Resources Ltd currently boasts a 12-month trailing dividend yield of 2.86% and a 12-month forward dividend yield of 1.33%. This indicates an anticipated decrease in dividend payments over the next year. Over the past three years, the annual dividend growth rate was a robust 59.70%, which tapers to 38.70% over a five-year period, and 18.20% over the past decade.
Considering the dividend yield and five-year growth rate, the 5-year yield on cost for Mineral Resources Ltd stock is approximately 14.68% as of today.
The Sustainability Question: Payout Ratio and Profitability
Evaluating the sustainability of Mineral Resources Ltd's dividend involves examining the dividend payout ratio, which stands at 0.62 as of 2023-12-31. This ratio indicates a balance between earnings distribution and retention for growth and stability. Additionally, the company's profitability rank is an impressive 9 out of 10, reflecting strong profitability relative to its peers and consistent net profit over 9 of the past 10 years.
Growth Metrics: The Future Outlook
Mineral Resources Ltd's growth rank of 9 out of 10 signifies a positive growth trajectory. The company's robust revenue per share and a 3-year revenue growth rate of approximately 30.00% per year outperform 82.22% of global competitors. Despite a challenging 3-year EPS growth rate of -28.30%, the company's 5-year EBITDA growth rate of 12.00% indicates resilience, outperforming 47.87% of global competitors.
Engaging Conclusion
In conclusion, Mineral Resources Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a picture of a company that has managed to balance shareholder returns with steady growth. The company's commitment to consistent dividend increases and its strong financial health suggest a reliable income stream for investors. As Mineral Resources Ltd navigates the dynamic mining sector, its strategic initiatives and competitive position will be key in sustaining this trajectory. Are you considering adding a dividend king to your portfolio? Mineral Resources Ltd's upcoming dividend might be an opportunity worth exploring.
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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.
