Pan American Silver Corp's Dividend Analysis
Insights into Pan American Silver Corp's Upcoming Dividend Payment
Pan American Silver Corp (NYSE:PAAS) recently announced a dividend of $0.1 per share, payable on 2023-12-01, with the ex-dividend date set for 2023-11-17. 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 Pan American Silver Corp's dividend performance and assess its sustainability.
What Does Pan American Silver Corp Do?
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Pan American Silver Corp is a mining company principally engaged in the operation and development of, and exploration for, silver and gold-producing properties and assets. Its principal products are silver and gold, although it also produces and sells zinc, lead, and copper. Its operating mines comprise La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, and San Vicente mines.
A Glimpse at Pan American Silver Corp's Dividend History
Pan American Silver Corp has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pan American Silver Corp's Dividend Yield and Growth
As of today, Pan American Silver Corp currently has a 12-month trailing dividend yield of 2.81% and a 12-month forward dividend yield of 2.81%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Pan American Silver Corp's annual dividend growth rate was 49.20%. Extended to a five-year horizon, this rate decreased to 36.00% per year. And over the past decade, Pan American Silver Corp's annual dividends per share growth rate stands at 2.70%.
Based on Pan American Silver Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Pan American Silver Corp stock as of today is approximately 13.07%.
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 2023-09-30, Pan American Silver Corp's dividend payout ratio is 0.00.
Pan American Silver Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Pan American Silver Corp's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 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. Pan American Silver Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Pan American Silver Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Pan American Silver Corp's revenue has increased by approximately 3.00% per year on average, a rate that underperforms approximately 70.78% of global competitors.
Concluding Thoughts on Pan American Silver Corp's Dividend Outlook
In conclusion, Pan American Silver Corp's consistent dividend payments and historical growth rates reflect a shareholder-friendly policy. However, the payout ratio and profitability metrics suggest a cautious approach to dividend sustainability. Investors should also consider the company's growth prospects when evaluating the long-term viability of its dividends. Pan American Silver Corp's fair growth rank and revenue trends can offer some assurance, yet it's essential to monitor these metrics alongside industry trends and economic factors.
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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.
