Opera Ltd's Dividend Analysis
Insights into Opera Ltd's Upcoming Dividend and Financial Health
Opera Ltd (NASDAQ:OPRA) recently announced a dividend of $0.40 per share, payable on 2024-01-09, with the ex-dividend date set for 2024-01-02. 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 Opera Ltd's dividend performance and assess its sustainability.
What Does Opera Ltd Do?
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Opera Ltd is a global internet brand with a large, engaged and growing base. It offers users around the globe a range of products and services that include a variety of PC and mobile browsers, Opera Gaming portals and development tools, Opera News content recommendation products, and a number of e-commerce products and services. Its features include tabbed browsing, data savings, PC/mobile sync, and numerous features focused on privacy and security, including ad blocking and a built-in VPN. Its browser products include Opera Mini, Opera Browser for Android and iOS, Opera for Computers, Opera GX and Opera GX Mobile, separate browsers tailored for gamers. The newest addition of browsers is the beta release of a Web3-centric browser for PC and mobile which is tailored for crypto enthusiasts.
A Glimpse at Opera Ltd's Dividend History
Opera Ltd has maintained a consistent dividend payment record since 2023, distributing dividends on a bi-annual basis. Despite the lack of data to establish a long-term trend, the company's commitment to providing shareholder returns is evident. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Opera Ltd's Dividend Yield and Growth
As of today, Opera Ltd currently has a 12-month trailing dividend yield of 3.02% and a 12-month forward dividend yield of 6.05%. This disparity suggests an expectation of increased dividend payments over the next 12 months. Additionally, Opera Ltd's 5-year yield on cost is approximately 3.01%, indicating a stable return on investment for long-term shareholders based on current dividend growth rates.
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, Opera Ltd's dividend payout ratio is 0.57, indicating a healthy balance between distributing earnings and retaining capital for growth.
Opera Ltd's profitability rank of 6 out of 10 suggests fair profitability, with the company reporting net profit in 5 out of the past 10 years, demonstrating a reliable financial position to sustain its dividend payments.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Opera Ltd's growth rank of 6 out of 10 indicates a fair growth outlook. The company's revenue model is strong, with Opera Ltd's revenue per share and 3-year revenue growth rate showing an average annual increase of approximately 24.70%, outperforming roughly 73.94% of global competitors. This robust revenue growth bodes well for future dividend sustainability and potential increases.
Next Steps
In conclusion, Opera Ltd's forthcoming dividend payment, along with its consistent dividend history, presents an attractive opportunity for income-focused investors. The company's dividend growth rate, payout ratio, profitability, and growth metrics collectively suggest that Opera Ltd is positioned to maintain, and potentially grow, its dividend distributions in the future. Investors seeking to expand their portfolios with high-dividend yield stocks can leverage the tools available on GuruFocus, such as the High Dividend Yield Screener, to discover more opportunities like Opera Ltd.
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.
