Paramount Resources Ltd's Dividend Analysis
An In-Depth Look at Paramount Resources Ltd's Upcoming Dividend Payout
Paramount Resources Ltd (PRMRF) recently announced a dividend of $0.13 per share, payable on 2024-01-31, with the ex-dividend date set for 2024-01-12. 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 Paramount Resources Ltd's dividend performance and assess its sustainability.
What Does Paramount Resources Ltd Do?
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Paramount Resources Ltd is a Canadian energy company that explores, develops, produces, and markets natural gas, crude oil, and natural gas liquids. The company takes part in exploration and production in Alberta and British Columbia. Sales for Paramount's products are priced in a multitude of markets that span the United States and Canada. Depending on the product, contracts can have daily, monthly, or long-term agreements. Assets for exploration and production are acquired by way of royalties that are paid to provincial governments and freehold landowners.
A Glimpse at Paramount Resources Ltd's Dividend History
Paramount Resources Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Paramount Resources Ltd's Dividend Yield and Growth
As of today, Paramount Resources Ltd currently has a 12-month trailing dividend yield of 5.80% and a 12-month forward dividend yield of 5.89%. This suggests an expectation of increased dividend payments over the next 12 months.
Paramount Resources Ltd's dividend yield of 5.80% is near a 10-year high and outperforms 62.83% of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as 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 5.80%.
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, Paramount Resources Ltd's dividend payout ratio is 0.36.
Paramount Resources Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Paramount Resources Ltd's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 4 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. Paramount Resources Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Paramount Resources Ltd's 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 85.88% of global competitors.
Concluding Insights on Paramount Resources Ltd's Dividend Prospects
Paramount Resources Ltd's commitment to consistent dividend payments, coupled with a strong dividend growth rate, positions it as an appealing choice for income-focused investors. The company's moderate payout ratio and fair profitability rank underline its ability to sustain dividend distributions. Moreover, Paramount Resources Ltd's solid growth metrics paint a promising picture of the company's future, potentially leading to continued dividend increases. With these factors in mind, value investors may consider Paramount Resources Ltd as a component of a diversified income portfolio. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
