Unveiling B2Gold Corp's Dividend Performance: An In-depth Analysis
A comprehensive look at B2Gold Corp's dividend history, yield, and sustainability
B2Gold Corp(BTG) recently announced a dividend of $0.04 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-20. 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 deep dive into B2Gold Corps dividend performance and assess its sustainability.
What Does B2Gold Corp Do?
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B2Gold Corp is an international, low-cost, senior gold mining company. It has three operating open-pit gold mines in Mali, Namibia, and the Philippines and numerous exploration projects across four continents. Other significant assets include the Gramalote and Kiaka gold projects. The company focuses on acquiring and developing interests in mineral properties with a primary focus on gold deposits as gold production forms all its revenue. There is no dependence on a particular purchaser because the gold is sold into a global market. The company's reportable operating segments include its mining operations and development projects, namely Fekola; Masbate; Otjikoto; other mineral properties; and corporate and other. It generates maximum revenue from the Fekola mine segment in Mali.
A Glimpse at B2Gold Corp's Dividend History
B2Gold Corp has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down B2Gold Corp's Dividend Yield and Growth
As of today, B2Gold Corp currently has a 12-month trailing dividend yield of 5.10% and a 12-month forward dividend yield of 5.10%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, B2Gold Corp's annual dividend growth rate was 155.60%. Based on B2Gold Corp's dividend yield and five-year growth rate, the 5-year yield on cost of B2Gold Corp stock as of today is approximately 5.10%.
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, B2Gold Corp's dividend payout ratio is 0.59.
B2Gold Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks B2Gold Corp's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. B2Gold Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and B2Gold Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. B2Gold Corp's revenue has increased by approximately 13.90% per year on average, a rate that outperforms than approximately 55.52% 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, B2Gold Corp's earnings increased by approximately -4.00% per year on average, a rate that outperforms than approximately 36.65% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 40.70%, which outperforms than approximately 88.48% of global competitors.
Next Steps
In conclusion, B2Gold Corp's consistent dividend payments, impressive growth rate, and sustainable payout ratio, coupled with its strong profitability and growth metrics, make it a compelling prospect for value investors seeking reliable dividend income. However, like all investments, it's essential to conduct thorough research and consider the company's overall financial health before making an investment decision.
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This article first appeared on GuruFocus.
