Dorian LPG Ltd's Dividend Analysis
Exploring the Dividend Performance and Sustainability of Dorian LPG Ltd
Dorian LPG Ltd (NYSE:LPG) recently announced a dividend of $1 per share, payable on 2023-11-02, with the ex-dividend date set for 2023-10-19. As investors anticipate this forthcoming payment, the focus also intensifies on the company's dividend history, yield, and growth rates. With data from GuruFocus, we delve into Dorian LPG Ltd's dividend performance and evaluate its sustainability.
What Does Dorian LPG Ltd Do?
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Dorian LPG Ltd is an international liquefied petroleum gas shipping company with a focus on owning and operating gas carriers, or VLGCs. The company currently operates approximately 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
Since 2021, Dorian LPG Ltd has maintained a consistent dividend payment record, with dividends 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 12.89% and a 12-month forward dividend yield of 12.89%. This suggests an expectation of similar 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 12.89%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of the dividend is evaluated by examining 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Dorian LPG Ltd's dividend payout ratio is 0.81, which may suggest that the company's dividend may not be sustainable.
Dorian LPG Ltd's profitability rank, as of 2023-06-30, is 8 out of 10, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. 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, 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 60.93% 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 27.50% per year on average, a rate that outperforms approximately 55.48% of global competitors.
Conclusion
In conclusion, Dorian LPG Ltd's consistent dividend payments, impressive growth rate, and solid profitability demonstrate its commitment to rewarding shareholders. However, the high payout ratio raises questions about the sustainability of its dividends. Therefore, investors should carefully consider these factors before making investment decisions. 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.
