B2Gold Corp's Dividend Analysis
Understanding B2Gold Corp's Dividend Dynamics
B2Gold Corp (BTG) recently announced a dividend of $0.04 per share, payable on 2023-12-18, with the ex-dividend date set for 2023-12-01. 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 B2Gold Corp's dividend performance and assess its sustainability.
What Does B2Gold Corp Do?
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B2Gold Corp is an international, low-cost, senior gold mining company. It has three operating open-pit gold mines in Mali, Namibia, and the Philippines and numerous exploration projects across four continents. Other significant assets include the Gramalote and Kiaka gold projects. The company focuses on acquiring and developing interests in mineral properties with a primary focus on gold deposits as gold production forms all its revenue. There is no dependence on a particular purchaser because the gold is sold into a global market. The company's reportable operating segments include its mining operations and development projects, namely Fekola; Masbate; Otjikoto; other mineral properties; and corporate and other. It generates maximum revenue from the Fekola mine segment in Mali.
A Glimpse at B2Gold Corp's Dividend History
B2Gold Corp has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down B2Gold Corp's Dividend Yield and Growth
As of today, B2Gold Corp currently has a 12-month trailing dividend yield of 4.78% and a 12-month forward dividend yield of 4.78%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, B2Gold Corp's annual dividend growth rate was 155.60%. Based on B2Gold Corp's dividend yield and five-year growth rate, the 5-year yield on cost of B2Gold Corp stock as of today is approximately 4.78%.
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 2023-09-30, B2Gold Corp's dividend payout ratio is 0.64.
B2Gold Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks B2Gold Corp's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. B2Gold Corp'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 B2Gold Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. B2Gold Corp's revenue has increased by approximately 13.90% per year on average, a rate that outperforms approximately 55.31% 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, B2Gold Corp's earnings increased by approximately 8.90% per year on average, a rate that outperforms approximately 47.08% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 41.60%, which outperforms approximately 90.57% of global competitors.
Looking Ahead: B2Gold Corp's Dividend Prospects
In conclusion, B2Gold Corp's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and solid profitability and growth metrics paint a promising picture for current and potential investors. The company's ability to maintain and potentially increase its dividend in the future is supported by these strong financial indicators. As value investors consider the long-term benefits of holding B2Gold Corp in their portfolios, the upcoming dividend payment serves as a reminder of the company's commitment to shareholder returns. Will B2Gold Corp continue to shine as a golden opportunity for dividend investors? Only time will tell, but the current data certainly suggests a lustrous outlook.
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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.
