Exploring the Dividend Performance and Sustainability of Var Energi ASA (VARRY, Financial)
Var Energi ASA (VARRY) recently announced a dividend of $0.22 per share, payable on 2024-05-22, with the ex-dividend date set for 2024-05-03. 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 Var Energi ASA's dividend performance and assess its sustainability.
What Does Var Energi ASA Do?
Var Energi ASA is an independent upstream oil and gas company on the Norwegian continental shelf. It operates within the geographical area of Norway and the business is entirely related to the exploration for and production of petroleum in Norway. Revenues are mainly related to the sale of oil, gas, and NGL.
A Glimpse at Var Energi ASA's Dividend History
Var Energi ASA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Var Energi ASA's Dividend Yield and Growth
As of today, Var Energi ASA currently has a 12-month trailing dividend yield of 11.81% and a 12-month forward dividend yield of 11.79%. This suggests an expectation of stable dividend payments over the next 12 months.
Based on Var Energi ASA's dividend yield and five-year growth rate, the 5-year yield on cost of Var Energi ASA stock as of today is approximately 11.81%.
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 2024-03-31, Var Energi ASA's dividend payout ratio is 1.18, suggesting a potentially sustainable dividend.
Var Energi ASA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Var Energi ASA's profitability 5 out of 10 as of 2024-03-31, 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. Var Energi ASA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Var Energi ASA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Var Energi ASA's revenue has increased by approximately 42.30% per year on average, a rate that outperforms approximately 87.62% 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, Var Energi ASA's earnings increased by approximately 211.30% per year on average, a rate that outperforms approximately 97.78% of global competitors.
Conclusion: Evaluating Var Energi ASA's Dividend Strategy
Considering Var Energi ASA's consistent dividend payments, robust yield figures, and solid growth metrics, the company presents a compelling case for dividend investors. However, potential investors should keep an eye on the payout ratio and profitability rankings to ensure long-term sustainability. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using 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.
