Helmerich & Payne Inc's Dividend Analysis
Assessing the Sustainability and Growth of HP's Dividend Payments
Helmerich & Payne Inc(NYSE:HP) recently announced a dividend of $0.42 per share, payable on 2024-02-27, with the ex-dividend date set for 2024-02-12. 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 Helmerich & Payne Inc's dividend performance and assess its sustainability.
What Does Helmerich & Payne Inc Do?
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Helmerich & Payne maintains one of the largest fleets of land drilling rigs in the U.S. The company's FlexRig line is the leading choice to drill horizontal wells for production of U.S. tight oil and gas. H&P is present in nearly every major U.S. shale play and also has a small but growing presence internationally.
A Glimpse at Helmerich & Payne Inc's Dividend History
Helmerich & Payne Inc has maintained a consistent dividend payment record since 1973. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Helmerich & Payne Inc's Dividend Yield and Growth
As of today, Helmerich & Payne Inc currently has a 12-month trailing dividend yield of 4.93% and a 12-month forward dividend yield of 4.41%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Helmerich & Payne Inc's annual dividend growth rate was -6.60%. Extended to a five-year horizon, this rate decreased to -15.40% per year. And over the past decade, Helmerich & Payne Inc's annual dividends per share growth rate stands at -2.60%.
Based on Helmerich & Payne Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Helmerich & Payne Inc stock as of today is approximately 2.14%.
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 2023-12-31, Helmerich & Payne Inc's dividend payout ratio is 0.49.
Helmerich & Payne Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Helmerich & Payne Inc's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 5 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. Helmerich & Payne Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Helmerich & Payne Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Helmerich & Payne Inc's revenue has increased by approximately 19.40% per year on average, a rate that outperforms approximately 67.29% of global competitors.
Concluding Thoughts on Helmerich & Payne Inc's Dividend Prospects
In conclusion, while Helmerich & Payne Inc's dividend history is one of consistency, its recent growth rates and yield projections suggest caution for income-focused investors. The company's moderate payout ratio and profitability rank indicate a balanced approach to dividend payments and earnings retention. However, the future outlook, as implied by its growth rank and revenue trends, presents a more optimistic picture, potentially signaling room for dividend sustainability or growth. Investors considering HP as a potential addition to their portfolios for its dividend attributes should weigh these factors carefully. For those seeking additional high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener for further research.
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.
