Parkland Corp's Dividend Analysis
Assessing the Sustainability of Parkland Corp's Upcoming Dividend
Parkland Corp (PKIUF) recently announced a dividend of $0.34 per share, payable on 2024-01-15, with the ex-dividend date set for 2023-12-21. 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 Parkland Corp's dividend performance and assess its sustainability.
What Does Parkland Corp Do?
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Parkland Corp is a food and convenience retailer and an independent marketer, distributor, and refiner of fuel and petroleum products. Parkland delivers refined fuels, propane, and other high-quality petroleum products to motorists, businesses, consumers, and wholesale customers across the Americas. The company's lines of business are; Retail line of business includes the operations of Parkland retail service stations, including EV charging stations, and convenience and food stores, Commercial includes the operations of card lock sites, bulk fuel, propane, heating oil, lubricants, and other related services, Refining includes the operations of the Burnaby Refinery, and Corporate includes centralized administrative services and expenses.
A Glimpse at Parkland Corp's Dividend History
Parkland Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Parkland Corp's Dividend Yield and Growth
As of today, Parkland Corp currently has a 12-month trailing dividend yield of 3.11% and a 12-month forward dividend yield of 3.09%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Parkland Corp's annual dividend growth rate was 2.70%. Extended to a five-year horizon, this rate increased to 3.40% per year. And over the past decade, Parkland Corp's annual dividends per share growth rate stands at 2.30%.
Based on Parkland Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Parkland Corp stock as of today is approximately 3.68%.
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, Parkland Corp's dividend payout ratio is 0.53.
Parkland Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Parkland Corp's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Parkland Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Parkland Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Parkland Corp's revenue has increased by approximately 21.30% per year on average, a rate that outperforms approximately 71.51% 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, Parkland Corp's earnings increased by approximately 24.10% per year on average, a rate that outperforms approximately 54.02% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 18.50%, which outperforms approximately 65.23% of global competitors.
Next Steps
In conclusion, Parkland Corp's demonstrated track record of consistent dividend payments, combined with a reasonable payout ratio and robust profitability, positions it as a potentially attractive option for income-focused investors. The company's solid growth metrics further underscore the potential for continued dividend sustainability and growth. As Parkland Corp prepares to distribute its next dividend, investors should consider the company's financial health and growth prospects in their overall assessment. Is Parkland Corp's dividend strategy aligned with your investment goals? How does it fit into your portfolio's dividend income strategy? These are critical questions for investors as they weigh the future of their investments in Parkland Corp.
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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.
