Yahoo Finance Sandstorm Gold Ltd's Dividend Analysis
An In-Depth Look at Sandstorm Gold Ltd's Upcoming Dividend and Financial Health
Sandstorm Gold Ltd (NYSE:SAND) recently announced a dividend of $0.02 per share, payable on 2024-04-26, with the ex-dividend date set for 2024-04-15. 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 Sandstorm Gold Ltd's dividend performance and assess its sustainability.
What Does Sandstorm Gold Ltd Do?
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Sandstorm Gold Ltd provides financing to companies engaged in gold mining through the gold stream and royalty. Geographically, the company has operational footprints in North America, South & Central America, Africa, and Asia & Australia. The firm's royalties include Hod Maden, Santa Elena, Chapada, Platreef, Greenstone, and Cerro Moro.
A Glimpse at Sandstorm Gold Ltd's Dividend History
Sandstorm Gold Ltd has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sandstorm Gold Ltd's Dividend Yield and Growth
As of today, Sandstorm Gold Ltd currently has a 12-month trailing dividend yield of 1.10% and a 12-month forward dividend yield of 1.10%, indicating an expectation of stable dividend payments over the next 12 months. Based on Sandstorm Gold Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sandstorm Gold Ltd stock as of today is approximately 1.10%.
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 2023-12-31, Sandstorm Gold Ltd's dividend payout ratio is 0.70, which may suggest that the company's dividend could be at risk of reduction if profitability falters.
Sandstorm Gold Ltd's profitability rank of 8 out of 10 as of 2023-12-31, suggests good profitability prospects, with the company having reported net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must demonstrate robust growth metrics. Sandstorm Gold Ltd's growth rank of 8 out of 10 indicates a positive growth trajectory compared to its competitors. However, Sandstorm Gold Ltd's revenue growth rate of approximately 9.90% per year on average underperforms about 51.01% of global competitors. Additionally, the company's 3-year EPS growth rate and 5-year EBITDA growth rate also underperform the majority of global competitors, which could indicate challenges ahead in sustaining dividend growth.
Engaging Conclusion
In conclusion, while Sandstorm Gold Ltd's consistent dividend history and strong profitability rank paint a positive picture, the sustainability of its dividends may be a concern given the payout ratio and underwhelming growth metrics relative to peers. Investors considering Sandstorm Gold Ltd for its dividend should weigh these factors carefully and monitor the company's future earnings and growth potential. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find opportunities that align with their investment strategy.
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.
