Sociedad Quimica Y Minera De Chile SA's Dividend Analysis
Assessing the Sustainability and Growth of SQM's Dividend
Sociedad Quimica Y Minera De Chile SA(NYSE:SQM) recently announced a dividend of $0.61 per share, payable on 0000-00-00, with the ex-dividend date set for 2023-11-02. 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 delve into Sociedad Quimica Y Minera De Chile SA's dividend performance and assess its sustainability.
What Does Sociedad Quimica Y Minera De Chile SA Do?
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Sociedad Quimica y Minera de Chile is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts. The company extracts these materials through its high-quality caliche ore and salt brine deposits. SQM is developing a hard rock lithium project in Australia with plans to acquire a second hard rock project there.
A Glimpse at Sociedad Quimica Y Minera De Chile SA's Dividend History
Sociedad Quimica Y Minera De Chile SA has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sociedad Quimica Y Minera De Chile SA's Dividend Yield and Growth
As of today, Sociedad Quimica Y Minera De Chile SA currently has a 12-month trailing dividend yield of 18.04% and a 12-month forward dividend yield of 15.48%. This suggests an expectation of decrease dividend payments over the next 12 months.
Sociedad Quimica Y Minera De Chile SA's dividend yield of 18.04% is near a 10-year high and outperforms than 98.77 of global competitors in the Chemicals industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Sociedad Quimica Y Minera De Chile SA's annual dividend growth rate was 96.30%. Extended to a five-year horizon, this rate decreased to 34.60% per year. And over the past decade, Sociedad Quimica Y Minera De Chile SA's annual dividends per share growth rate stands at an impressive 21.50%.
Based on Sociedad Quimica Y Minera De Chile SA's dividend yield and five-year growth rate, the 5-year yield on cost of Sociedad Quimica Y Minera De Chile SA stock as of today is approximately 79.70%.
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 2023-06-30, Sociedad Quimica Y Minera De Chile SA's dividend payout ratio is 0.64.
Sociedad Quimica Y Minera De Chile SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sociedad Quimica Y Minera De Chile SA's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of 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. Sociedad Quimica Y Minera De Chile SA's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Sociedad Quimica Y Minera De Chile SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sociedad Quimica Y Minera De Chile SA's revenue has increased by approximately 81.30% per year on average, a rate that outperforms than approximately 98.27% 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, Sociedad Quimica Y Minera De Chile SA's earnings increased by approximately 147.60% per year on average, a rate that outperforms than approximately 97.26% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 45.60%, which outperforms than approximately 91.04% of global competitors.
Next Steps
In conclusion, Sociedad Quimica Y Minera De Chile SA's robust dividend payments, impressive growth rate, reasonable payout ratio, high profitability, and strong growth metrics make it a compelling consideration for income investors. However, investors should continue to monitor these metrics closely to ensure the sustainability of dividends in the future. 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.
