Paramount Resources Ltd's Dividend Analysis
Examining the Dividend Performance and Sustainability of Paramount Resources Ltd (PRMRF)
Canadian energy company, Paramount Resources Ltd (PRMRF), has recently announced a dividend of $0.13 per share, to be paid on 2023-10-31, with the ex-dividend date set for 2023-10-13. As investors anticipate this upcoming payment, it is also crucial to delve into the company's dividend history, yield, and growth rates. This article, leveraging data from GuruFocus, aims to provide an in-depth analysis of Paramount Resources Ltd's dividend performance and assess its sustainability.
Understanding Paramount Resources Ltd
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Paramount Resources Ltd is a prominent player in the energy sector, specializing in the exploration, development, production, and marketing of natural gas, crude oil, and natural gas liquids. The company operates primarily in Alberta and British Columbia. Paramount's products are sold across various markets in the United States and Canada, with contracts ranging from daily and monthly to long-term agreements. The company acquires exploration and production assets through royalties paid to provincial governments and freehold landowners.
A Glimpse at Paramount Resources Ltd's Dividend History
Paramount Resources Ltd has demonstrated a consistent dividend payment record since 2021, distributing dividends on a monthly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Breaking Down Paramount Resources Ltd's Dividend Yield and Growth
As of today, Paramount Resources Ltd boasts a 12-month trailing dividend yield of 4.90% and a 12-month forward dividend yield of 4.94%. This indicates an anticipated increase in dividend payments over the next 12 months.
With a dividend yield nearing a 10-year high and outperforming 53.29% of global competitors in the Oil & Gas industry, Paramount Resources Ltd's dividend yield presents an attractive proposition for income investors.
Based on Paramount Resources Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Paramount Resources Ltd stock as of today is approximately 4.90%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, the dividend payout ratio is a crucial factor. This ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio implies 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, Paramount Resources Ltd's dividend payout ratio is 0.28.
Paramount Resources Ltd's profitability rank, as of 2023-06-30, is 5 out of 10, suggesting fair profitability. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Paramount Resources Ltd's growth rank of 5 out of 10 suggests a fair growth outlook. Its revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Paramount Resources Ltd's revenue has increased by approximately 34.80% per year on average, a rate that outperforms approximately 86.58% of global competitors.
Concluding Thoughts
Considering Paramount Resources Ltd's consistent dividend payments, impressive growth rate, low payout ratio, fair profitability, and robust growth metrics, the company appears to be an attractive proposition for income investors. However, as with any investment, potential investors should conduct thorough research and consider the company's overall financial health before making a decision.
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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.
