Assessing the Dividend Profile of Northern Oil & Gas Inc
A deep dive into Northern Oil & Gas Inc's dividend history, yield, growth, and sustainability
Northern Oil & Gas Inc(NYSE:NOG) recently announced a dividend of $0.38 per share, payable on 2023-10-31, with the ex-dividend date set for 2023-09-27. 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 deep dive into Northern Oil & Gas Incs dividend performance and assess its sustainability.
What Does Northern Oil & Gas Inc Do?
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Northern Oil & Gas Inc is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties. Its principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States.
A Glimpse at Northern Oil & Gas Inc's Dividend History
Northern Oil & Gas 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 Northern Oil & Gas Inc's Dividend Yield and Growth
As of today, Northern Oil & Gas Inc currently has a 12-month trailing dividend yield of 3.18% and a 12-month forward dividend yield of 3.81%. This suggests an expectation of increase dividend payments over the next 12 months.
Based on Northern Oil & Gas Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Northern Oil & Gas Inc stock as of today is approximately 3.18%.
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 2023-06-30, Northern Oil & Gas Inc's dividend payout ratio is 0.09.
Northern Oil & Gas Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Northern Oil & Gas Inc's profitability 6 out of 10 as of 2023-06-30, 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. Northern Oil & Gas Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Northern Oil & Gas Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Northern Oil & Gas Inc's revenue has increased by approximately 13.80% per year on average, a rate that outperforms than approximately 56.61% of global competitors.
Concluding Thoughts
Considering Northern Oil & Gas Inc's consistent dividend payments, promising dividend growth rate, low payout ratio, fair profitability, and strong growth metrics, the company presents a compelling case for dividend-focused investors. However, it's crucial for investors to continue monitoring these factors over time to ensure the sustainability of dividends.
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This article first appeared on GuruFocus.
