Canadian Natural Resources Ltd's Dividend Analysis
Insight into Canadian Natural Resources Ltd's Upcoming Dividend Payment
Canadian Natural Resources Ltd (NYSE:CNQ) recently announced a dividend of $1 per share, payable on 2024-01-05, with the ex-dividend date set for 2023-12-07. 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 Canadian Natural Resources Ltd's dividend performance and assess its sustainability.
What Does Canadian Natural Resources Ltd Do?
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Canadian Natural Resources Ltd is an independent crude oil and natural gas exploration, development, and production company. The Company's exploration and production operations are focused in North America, largely in Western Canada; the United Kingdom (UK) portion of the North Sea, and Cote d'Ivoire and South Africa in Offshore Africa. The Company's exploration and production activities are conducted in three geographic segments: North America, the North Sea, and Offshore Africa. These activities include the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company has two divisions; Oil Sands Mining and Upgrading Midstream and Refining. It derives a majority of its revenue from North America.
A Glimpse at Canadian Natural Resources Ltd's Dividend History
Canadian Natural Resources Ltd has maintained a consistent dividend payment record since 2001. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Canadian Natural Resources Ltd's Dividend Yield and Growth
As of today, Canadian Natural Resources Ltd currently has a 12-month trailing dividend yield of 3.97% and a 12-month forward dividend yield of 4.38%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Canadian Natural Resources Ltd's annual dividend growth rate was 27.40%. Extended to a five-year horizon, this rate decreased to 20.40% per year. And over the past decade, Canadian Natural Resources Ltd's annual dividends per share growth rate stands at an impressive 18.00%.
Based on Canadian Natural Resources Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Canadian Natural Resources Ltd stock as of today is approximately 10.04%.
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, Canadian Natural Resources Ltd's dividend payout ratio is 0.55.
Canadian Natural Resources Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Canadian Natural Resources Ltd's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 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. Canadian Natural Resources Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Canadian Natural Resources Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Canadian Natural Resources Ltd's revenue has increased by approximately 28.20% per year on average, a rate that outperforms approximately 80.86% 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, Canadian Natural Resources Ltd's earnings increased by approximately 52.10% per year on average, a rate that outperforms approximately 76.69% of global competitors.
Next Steps
Considering Canadian Natural Resources Ltd's consistent dividend payments, robust dividend growth rate, moderate payout ratio, strong profitability, and solid growth metrics, investors have compelling reasons to consider CNQ for their income portfolios. The company's ability to maintain and grow its dividends is supported by its financial health and market position. The upcoming dividend payment further highlights the company's commitment to returning value to shareholders. Investors seeking to diversify their portfolios with income-generating assets should keep a close eye on Canadian Natural Resources Ltd as a potential candidate. 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.
This article first appeared on GuruFocus.
