Exploring the Sustainability and Growth of Kunlun Energy Co Ltd's Dividends
Kunlun Energy Co Ltd (KLYCY, Financial) recently announced a dividend of $0.39 per share, payable on 2024-08-02, with the ex-dividend date set for 2024-06-04. 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 Kunlun Energy Co Ltd's dividend performance and assess its sustainability.
What Does Kunlun Energy Co Ltd Do?
Kunlun Energy Co Ltd is an integrated oil and gas service company. The firm is engaged in multiple activities which include exploration and production operations at its oils fields located internationally, operating natural gas pipeline mainly providing support services to the oil and gas industry, and offers processing and storage facilities of liquified natural gas(LNG), and sale of sale of LNG and liquified petroleum gas across China. The group is engaged in a broad range of oil and gas related activities and derives its revenue from its four operating divisions: Natural Gas Sales, Sales of LPG, LNG Processing and Terminal and sale of crude oil.
A Glimpse at Kunlun Energy Co Ltd's Dividend History
Kunlun Energy Co Ltd has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis.
Breaking Down Kunlun Energy Co Ltd's Dividend Yield and Growth
As of today, Kunlun Energy Co Ltd currently has a 12-month trailing dividend yield of 3.54% and a 12-month forward dividend yield of 3.79%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kunlun Energy Co Ltd's annual dividend growth rate was -2.80%. Extended to a five-year horizon, this rate increased to 1.40% per year. And over the past decade, Kunlun Energy Co Ltd's annual dividends per share growth rate stands at 6.10%.
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, Kunlun Energy Co Ltd's dividend payout ratio is 0.40.
Kunlun Energy Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kunlun Energy Co Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kunlun Energy Co Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Kunlun Energy Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kunlun Energy Co Ltd's revenue has increased by approximately 14.40% per year on average, a rate that underperforms than approximately 55.41% 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, Kunlun Energy Co Ltd's earnings increased by approximately 15.20% per year on average, a rate that underperforms than approximately 56.89% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.60%, which underperforms than approximately 54.74% of global competitors.
Next Steps
In conclusion, Kunlun Energy Co Ltd's consistent dividend payments, combined with a moderate growth in dividend rates and a strong profitability profile, suggest a sustainable dividend policy moving forward. However, the growth metrics indicate some areas of concern that could impact future dividend sustainability. Investors should keep a close eye on these developments. 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.
