Northern Oil & Gas Inc's Dividend Analysis
Assessing the Sustainability of NOG's Dividend Payments
Northern Oil & Gas Inc (NYSE:NOG) recently announced a dividend of $0.4 per share, payable on 2024-01-31, with the ex-dividend date set for 2023-12-27. 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 Northern Oil & Gas Inc's dividend performance and assess its sustainability.
What Does Northern Oil & Gas Inc Do?
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Northern Oil & Gas Inc is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties. Its principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States.
A Glimpse at Northern Oil & Gas Inc's Dividend History
Northern Oil & Gas Inc has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Northern Oil & Gas Inc's Dividend Yield and Growth
As of today, Northern Oil & Gas Inc currently has a 12-month trailing dividend yield of 3.67% and a 12-month forward dividend yield of 4.23%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Northern Oil & Gas Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Northern Oil & Gas Inc stock as of today is approximately 3.67%.
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, Northern Oil & Gas Inc's dividend payout ratio is 0.18.
Northern Oil & Gas Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Northern Oil & Gas Inc's profitability 6 out of 10 as of 2023-09-30, 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. Northern Oil & Gas Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Northern Oil & Gas Inc's revenue has increased by approximately 13.80% per year on average, a rate that outperforms approximately 55.22% 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, Northern Oil & Gas Inc's earnings increased by approximately 64.60% per year on average, a rate that outperforms approximately 82.99% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 39.00%, which outperforms approximately 87.8% of global competitors.
Next Steps
In conclusion, Northern Oil & Gas Inc's upcoming dividend payment, consistent dividend history, and promising yield figures make it an attractive option for dividend-seeking investors. The company's low payout ratio and fair profitability suggest a balanced approach to shareholder returns and business reinvestment. Furthermore, the solid growth metrics indicate a potential for continued dividend sustainability and growth, making NOG a noteworthy consideration for value investors. With these factors in mind, investors may want to contemplate the role that NOG could play in their portfolios. Are you prepared to capitalize on Northern Oil & Gas Inc's dividend prospects?
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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.
