Yahoo Finance Aker BP ASA's Dividend Analysis
Understanding the Dividend Dynamics of Aker BP ASA (AKRBY)
Aker BP ASA (AKRBY) recently announced a dividend of $0.3 per share, payable on 2024-05-22, with the ex-dividend date set for 2024-05-03. 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 Aker BP ASA's dividend performance and assess its sustainability.
What Does Aker BP ASA Do?
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Aker BP ASA operates oil and gas production, development, and exploration projects on the Norwegian Continental Shelf (NCS). Its projects include Alvheim field, Ivar Aasen, Skarv, Johan Sverdrup, Ula, and Valhall. Revenue is derived from a short list of clients and primarily consists of liquid sales. The Alvheim field, which developed with an FPSO, contributes the most volume for the company. The group's business is entirely related to exploration for and production of petroleum on, or to the borderline of the Norwegian continental shelf.
A Glimpse at Aker BP ASA's Dividend History
Aker BP ASA has maintained a consistent dividend payment record since 2023, with dividends currently distributed on a quarterly basis. Aker BP ASA has increased its dividend each year since -, earning it the title of a dividend king, a prestigious recognition given to companies that have increased their dividend each year for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Aker BP ASA's Dividend Yield and Growth
As of today, Aker BP ASA currently has a 12-month trailing dividend yield of 8.49% and a 12-month forward dividend yield of 8.69%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Aker BP ASA's annual dividend growth rate was 31.10%. Extended to a five-year horizon, this rate decreased to 12.80% per year. Based on Aker BP ASA's dividend yield and five-year growth rate, the 5-year yield on cost of Aker BP ASA stock as of today is approximately 15.50%.
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. As of 2024-03-31, Aker BP ASA's dividend payout ratio is 0.86, which may suggest that the company's dividend may not be sustainable. Aker BP ASA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Aker BP ASA's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 8 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. Aker BP ASA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Aker BP ASA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, increasing by approximately 48.40% per year on average, a rate that outperforms approximately 91.2% 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, increasing by approximately 43.40% per year on average, a rate that outperforms approximately 73.17% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 41.60%, which outperforms approximately 89.4% of global competitors.
Next Steps
Considering Aker BP ASA's robust dividend payments, consistent dividend growth rate, manageable payout ratio, strong profitability, and compelling growth metrics, the company presents an attractive prospect for value investors focused on dividend income. The forward-looking indicators suggest that Aker BP ASA is well-positioned to continue its dividend payments, supported by a strong operational framework and financial health. For those interested in exploring further, 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.
