Dorian LPG Ltd's Dividend Analysis
Insights into Dorian LPG Ltd's Dividend Sustainability and Growth
Dorian LPG Ltd (NYSE:LPG) recently announced a dividend of $1 per share, payable on 2024-02-27, with the ex-dividend date set for 2024-02-02. 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 Dorian LPG Ltd's dividend performance and assess its sustainability.
What Does Dorian LPG Ltd Do?
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Dorian LPG Ltd is an international liquefied petroleum gas shipping company focused on owning and operating gas carriers, or VLGCs. The company currently owns and operates around 22 modern VLGCs, including nineteen new fuel-efficient 84,000 cbm ECO-design VLGCs. Dorian LPG has offices in Connecticut, USA, London, United Kingdom, and Athens, Greece.
A Glimpse at Dorian LPG Ltd's Dividend History
Dorian LPG Ltd 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 Dorian LPG Ltd's Dividend Yield and Growth
As of today, Dorian LPG Ltd currently has a 12-month trailing dividend yield of 10.46% and a 12-month forward dividend yield of 10.46%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Dorian LPG Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Dorian LPG Ltd stock as of today is approximately 10.46%.
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, Dorian LPG Ltd's dividend payout ratio is 0.64.
Dorian LPG Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dorian LPG Ltd's profitability 8 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. Dorian LPG Ltd'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 Dorian LPG Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dorian LPG Ltd's revenue has increased by approximately 16.30% per year on average, a rate that outperforms approximately 59.81% 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, Dorian LPG Ltd's earnings increased by approximately 22.30% per year on average, a rate that outperforms approximately 52.47% of global competitors.
Next Steps
Considering Dorian LPG Ltd's strong dividend payments, consistent dividend growth rate, manageable payout ratio, robust profitability, and positive growth metrics, investors may find the company an interesting prospect for dividend income. The data suggests that Dorian LPG Ltd is not only maintaining its dividend distributions but also positioning itself for potential growth, which could lead to future dividend increases. As the shipping industry continues to evolve, Dorian LPG Ltd appears to be navigating with a steady hand, making it a noteworthy consideration for value investors focused on dividend income. Will Dorian LPG Ltd continue to be a reliable source of dividends in the years to come? That's a question value investors will be keen to explore.
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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.
