Assessing the Sustainability and Prospects of CHRD's Dividends
Chord Energy Corp (CHRD, Financial) recently announced a dividend of $3.25 per share, payable on 2024-03-19, with the ex-dividend date set for 2024-03-04. 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 Chord Energy Corp's dividend performance and assess its sustainability.
What Does Chord Energy Corp Do?
Chord Energy Corp is an independent exploration and production company. The company acquires, exploits, develops, and explores crude oil, natural gas, and natural gas liquids in the Williston Basin.
A Glimpse at Chord Energy Corp's Dividend History
Chord Energy Corp has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chord Energy Corp's Dividend Yield and Growth
As of today, Chord Energy Corp currently has a 12-month trailing dividend yield of 7.24% and a 12-month forward dividend yield of 6.30%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Chord Energy Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Chord Energy Corp stock as of today is approximately 7.24%.
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 2023-12-31, Chord Energy Corp's dividend payout ratio is 0.58. Chord Energy Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chord Energy Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 3 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. Chord Energy Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Chord Energy Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Chord Energy Corp's revenue has increased by approximately 18.30% per year on average, a rate that outperforms approximately 61.1% of global competitors.
Engaging Conclusion: Dividend Prospects Amidst Financial Health
Considering Chord Energy Corp's consistent dividend payments, a prudent payout ratio, and fair profitability and growth metrics, the company presents a compelling case for value investors interested in stable dividend income. However, the projected decrease in the forward dividend yield suggests the need for investors to monitor the company's future earnings and cash flow closely. With the energy sector's volatility, will Chord Energy Corp maintain its dividend attractiveness, or will market dynamics prompt a strategic shift? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find 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.
