Alliance Resource Partners LP's Dividend Analysis
Assessing the Sustainability of Alliance Resource Partners LP's Upcoming Dividend
Alliance Resource Partners LP (NASDAQ:ARLP) recently announced a dividend of $0.7 per share, payable on 2024-02-14, with the ex-dividend date set for 2024-02-06. 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 Alliance Resource Partners LP's dividend performance and assess its sustainability.
What Does Alliance Resource Partners LP Do?
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Alliance Resource Partners LP operates as a diversified coal mining company in the United States. It has four segments: Illinois Basin, Appalachia, Oil & Gas Royalties, and Coal Royalties. The Illinois Basin comprises underground mining complexes across multiple states, while the Appalachia segment includes various mining complexes. The Oil & Gas Royalties and Coal Royalties segments manage mineral interests and reserves. Alliance Resource Partners LP's diversified operations position it to potentially withstand sector fluctuations and maintain a stable financial base for dividend payments.
A Glimpse at Alliance Resource Partners LP's Dividend History
Alliance Resource Partners LP has a longstanding tradition of dividend payments, with a consistent record since 1999. Dividends are currently distributed on a quarterly basis, reflecting the company's commitment to sharing profits with its shareholders. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Alliance Resource Partners LP's Dividend Yield and Growth
As of today, Alliance Resource Partners LP boasts a 12-month trailing dividend yield of 13.16% and a forward dividend yield of the same percentage, suggesting a stable dividend outlook for the next year. Over the past three years, the annual dividend growth rate was an impressive 91.30%, although it slowed to 1.30% per year over five years. Over the past decade, the annual dividends per share growth rate has decreased by -8.50%. The 5-year yield on cost for Alliance Resource Partners LP stock stands at approximately 14.04%, indicating a robust return for long-term investors.
The Sustainability Question: Payout Ratio and Profitability
Dividend sustainability is often gauged by the payout ratio, which for Alliance Resource Partners LP is currently at 0.58. This indicates a balanced approach to dividend distribution and earnings retention. Alliance Resource Partners LP's profitability rank is strong at 8 out of 10, which, coupled with a history of net profit in 9 out of the past 10 years, suggests a stable financial foundation for maintaining its dividend policy.
Growth Metrics: The Future Outlook
Looking at growth prospects, Alliance Resource Partners LP's growth rank is a robust 8 out of 10. The company's revenue per share and 3-year revenue growth rate of 24.60% per year outperform approximately 57.98% of global competitors, indicating a solid revenue model that could support dividend sustainability and potential growth.
Next Steps for Investors
Considering Alliance Resource Partners LP's consistent dividend payments, impressive dividend growth rate, moderate payout ratio, strong profitability, and positive growth metrics, the company stands out as a potentially attractive option for income-focused investors. Those interested in high-dividend yield stocks can further explore opportunities with the High Dividend Yield Screener offered by GuruFocus.
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.
