An In-Depth Look at Kinross Gold Corp's Upcoming Dividend and Financial Health
Introduction to Kinross Gold Corp's Dividend Announcement
Kinross Gold Corp (KGC, Financial) recently announced a dividend of $0.03 per share, payable on 2024-06-13, with the ex-dividend date set for 2024-05-30. 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 Kinross Gold Corp's dividend performance and assess its sustainability.
What Does Kinross Gold Corp Do?
Kinross Gold is a Canada-based gold producer, producing roughly 2.2 million gold equivalent ounces in 2023. The company had about a decade of gold reserves at the end of 2023. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.
A Glimpse at Kinross Gold Corp's Dividend History
Kinross Gold Corp has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kinross Gold Corp's Dividend Yield and Growth
As of today, Kinross Gold Corp currently has a 12-month trailing dividend yield of 1.51% and a 12-month forward dividend yield of 1.51%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Kinross Gold Corp's annual dividend growth rate was 27.90%. Based on Kinross Gold Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Kinross Gold Corp stock as of today is approximately 1.51%.
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, Kinross Gold Corp's dividend payout ratio is 0.33. Kinross Gold Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kinross Gold Corp's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kinross Gold Corp'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 Kinross Gold Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kinross Gold Corp's revenue has increased by approximately 2.60% per year on average, a rate that underperforms than approximately 68.52% 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, Kinross Gold Corp's earnings increased by approximately -29.50% per year on average, a rate that underperforms than approximately 81.46% of global competitors.
Conclusion
Considering Kinross Gold Corp's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and fair profitability and growth metrics, the company presents a potentially stable investment for dividend-seeking shareholders. However, the underperformance in revenue and earnings growth compared to industry peers suggests areas for caution. Investors should keep an eye on these metrics as they evaluate the long-term sustainability of dividends from Kinross Gold Corp. For those looking to explore 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.
