Exploring the Dividend Performance and Sustainability of Civitas Resources Inc
Civitas Resources Inc (CIVI, Financial) recently announced a dividend of $1.5 per share, payable on 2024-06-26, with the ex-dividend date set for 2024-06-12. 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 Civitas Resources Inc's dividend performance and assess its sustainability.
What Does Civitas Resources Inc Do?
Civitas Resources Inc is an independent exploration and production company engaged in the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, in the Denver-Julesburg Basin of Colorado (DJ Basin). The company's operations are focused on developing the horizontal Niobrara and Codell formations that have a low-cost structure, mature infrastructure, production efficiencies, multiple producing horizons, multiple service providers, established reserves, and prospective drilling opportunities.
A Glimpse at Civitas Resources Inc's Dividend History
Civitas Resources Inc 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 Civitas Resources Inc's Dividend Yield and Growth
As of today, Civitas Resources Inc currently has a 12-month trailing dividend yield of 9.98% and a 12-month forward dividend yield of 8.63%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Civitas Resources Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Civitas Resources Inc stock as of today is approximately 9.98%.
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, Civitas Resources Inc's dividend payout ratio is 0.66.
Civitas Resources Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Civitas Resources Inc's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Civitas Resources Inc'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 Civitas Resources Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Civitas Resources Inc's revenue has increased by approximately 56.50% per year on average, a rate that outperforms approximately 93.47% 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, Civitas Resources Inc's earnings increased by approximately 27.30% per year on average, a rate that outperforms approximately 57.89% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 21.20%, which outperforms approximately 70.73% of global competitors.
Final Thoughts on Civitas Resources Inc's Dividend Outlook
Considering Civitas Resources Inc's consistent dividend payments, robust profitability, and strong growth metrics, the company appears well-positioned to sustain its dividend distributions in the foreseeable future. Investors seeking dividend growth stocks might find Civitas Resources Inc an attractive option. 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.
