Dorchester Minerals LP's Dividend Analysis
Insight into Dorchester Minerals LP's Upcoming Dividend Payment and Performance
Dorchester Minerals LP (NASDAQ:DMLP) recently announced a dividend of $1.01 per share, payable on 2024-02-08, with the ex-dividend date set for 2024-01-26. 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 delve into Dorchester Minerals LP's dividend performance and assess its sustainability.
What Does Dorchester Minerals LP Do?
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Dorchester Minerals LP operates as the owner of producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests. The company generates revenues from royalties, net profits interests, lease bonus, and others. It has leasehold interests in approximately 592 counties and parishes in around 28 states.
A Glimpse at Dorchester Minerals LP's Dividend History
Dorchester Minerals LP has maintained a consistent dividend payment record since 2003, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Dorchester Minerals LP's Dividend Yield and Growth
As of today, Dorchester Minerals LP currently boasts a 12-month trailing dividend yield of 10.23% and a 12-month forward dividend yield of 10.59%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Dorchester Minerals LP's annual dividend growth rate was 20.20%, which decreased to 14.70% per year over a five-year horizon. The company's annual dividends per share growth rate over the past decade stands at 3.50%.
Considering Dorchester Minerals LP's dividend yield and five-year growth rate, the 5-year yield on cost of Dorchester Minerals LP stock is approximately 20.31%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of Dorchester Minerals LP's dividends, one must consider the company's payout ratio. Dorchester Minerals LP's dividend payout ratio is 1.39 as of 2023-09-30, which may raise concerns about the sustainability of the company's dividends. However, Dorchester Minerals LP's profitability rank is 9 out of 10, indicating strong profitability prospects. The company has consistently reported positive net income each year for the past decade, bolstering its financial strength.
Growth Metrics: The Future Outlook
Dorchester Minerals LP's growth rank of 9 out of 10 reflects a promising growth trajectory relative to competitors. The company's revenue per share and 3-year revenue growth rate of approximately 25.30% per year outperforms about 76.73% of global competitors. Dorchester Minerals LP's 3-year EPS growth rate of roughly 30.70% per year also outperforms about 60.82% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 15.00% outperforms approximately 58.17% of global competitors, showcasing its capacity for sustained dividend payments.
Next Steps
Considering Dorchester Minerals LP's strong dividend payments, impressive growth rate, and robust payout ratio, along with its profitability and growth metrics, investors might view the company as a potentially attractive option for high-dividend yield investment. However, it's important to monitor the sustainability of the dividends, given the payout ratio concerns. For those seeking to explore further, GuruFocus Premium users can utilize the High Dividend Yield Screener to find similar high-dividend yield stocks.
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.
