Yahoo Finance HF Sinclair Corp's Dividend Analysis
Exploring the Sustainability and Growth of HF Sinclair Corp's Dividends
HF Sinclair Corp (NYSE:DINO) recently announced a dividend of $0.50 per share, payable on June 5, 2024, with the ex-dividend date set for May 21, 2024. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into HF Sinclair Corp's dividend performance and assess its sustainability.
What Does HF Sinclair Corp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
HF Sinclair is an integrated petroleum refiner that owns and operates seven refineries serving the Rockies, midcontinent, Southwest, and Pacific Northwest, with a total crude oil throughput capacity of 678,000 barrels per day. It can produce 380 million gallons of renewable diesel annually. It holds a marketing business with over 300 distributors and 1,500 wholesale branded sites across 30 states. It also owns and operates 4,400 miles of petroleum product pipelines and terminals principally in the southwestern United States.
A Glimpse at HF Sinclair Corp's Dividend History
HF Sinclair Corp has maintained a consistent dividend payment record since 1988, distributing dividends on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down HF Sinclair Corp's Dividend Yield and Growth
As of today, HF Sinclair Corp currently has a 12-month trailing dividend yield of 3.23% and a 12-month forward dividend yield of 3.48%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, HF Sinclair Corp's annual dividend growth rate was 8.70%, but this rate decreased to -0.50% per year over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at -1.80%.
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. As of March 31, 2024, HF Sinclair Corp's dividend payout ratio is 0.22, suggesting good retention of earnings for future growth and stability. HF Sinclair Corp's profitability rank of 7 out of 10, along with net profit reported in 8 out of the past 10 years, underscores its solid profitability prospects.
Growth Metrics: The Future Outlook
Ensuring the sustainability of dividends requires robust growth metrics. HF Sinclair Corp's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. Its revenue per share and the 3-year revenue growth rate of approximately 34.60% per year, outperforming about 80.44% of global competitors, indicates a strong revenue model.
Concluding Thoughts on HF Sinclair Corp's Dividend Sustainability
Considering HF Sinclair Corp's consistent dividend payments, growth in dividend yield, prudent payout ratio, and robust profitability and growth metrics, the company appears well-positioned to sustain its dividend payments in the foreseeable future. For investors seeking high-dividend yield stocks, exploring options through the High Dividend Yield Screener on GuruFocus could provide additional 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.
This article first appeared on GuruFocus.
