Impala Platinum Holdings Ltd (IMPUY): A Deep Dive into Its Dividend Performance
Understanding the Sustainability of Impala Platinum Holdings Ltd's Dividend Payments
Impala Platinum Holdings Ltd (IMPUY) recently announced a dividend of $0.09 per share, payable on 2023-10-03, with the ex-dividend date set for 2023-09-21. 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 deep dive into Impala Platinum Holdings Ltd's dividend performance and assess its sustainability.
What Does Impala Platinum Holdings Ltd Do?
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Impala Platinum Holdings Ltd is one of the world's largest producers of platinum and associated platinum group metals, including palladium and rhodium. The company is structured with five main operations located in Impala, Zimplats, Marula, Mimosa, and Two Rivers. Impala is the group's main operational unit and is situated on the Impala lease area on the western limb of Bushveld, east of Johannesburg in South Africa, and is one of the largest platinum-group-metal-bearing ore bodies in the world. The Impala operation comprises a 10-shaft mining complex and concentrating and smelting plants.
A Glimpse at Impala Platinum Holdings Ltd's Dividend History
Impala Platinum Holdings Ltd has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Impala Platinum Holdings Ltd's Dividend Yield and Growth
As of today, Impala Platinum Holdings Ltd currently has a 12-month trailing dividend yield of 15.07% and a 12-month forward dividend yield of 5.89%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Impala Platinum Holdings Ltd's annual dividend growth rate was 127.40%. Based on Impala Platinum Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Impala Platinum Holdings Ltd stock as of today is approximately 15.07%.
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 2023-06-30, Impala Platinum Holdings Ltd's dividend payout ratio is 2.54. This may suggest that the company's dividend may not be sustainable.
Impala Platinum Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Impala Platinum Holdings Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Impala Platinum Holdings 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 Impala Platinum Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Impala Platinum Holdings Ltd's revenue has increased by approximately 15.10% per year on average, a rate that outperforms than approximately 58.32% 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, Impala Platinum Holdings Ltd's earnings increased by approximately -33.00% per year on average, a rate that outperforms than approximately 18.03% of global competitors.
Concluding Thoughts
Impala Platinum Holdings Ltd's consistent dividend payments, decent growth rate, and strong profitability suggest a potentially sustainable dividend in the near term. However, the sustainability of the dividend is dependent on the company's ability to maintain its profitability and growth trajectory. Investors are advised to keep a close watch on these metrics and other relevant factors. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
