In This Article:
An In-Depth Look at Exmar NV's Upcoming Dividend and Its Sustainability
Exmar NV (EXMRF) recently announced a dividend of $0.78 per share, payable on 2024-05-29, with the ex-dividend date set for 2024-05-28. 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 Exmar NV's dividend performance and assess its sustainability.
What Does Exmar NV Do?
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Exmar NV is a liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carrier. It provides industrial marine and energy logistical solutions for transport, regasification, and liquefaction within the oil and gas industry. The company has three reportable segments: Shipping, Infrastructure, and Supporting services. The activities in the shipping segment include the transportation of liquefied gas products such as Liquid Petroleum Gas, anhydrous ammonia, and petrochemical gases; The infrastructure segment includes LNG infrastructure and Offshore and the segment supporting services include the specialized supporting services such as ship management services and travel agency services. Majority of the revenue is generated from the Shipping segment.
A Glimpse at Exmar NV's Dividend History
Exmar NV has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Exmar NV's Dividend Yield and Growth
As of today, Exmar NV currently has a 12-month trailing dividend yield of 89.47% and a 12-month forward dividend yield of 86.46%. This suggests an expectation of decreased dividend payments over the next 12 months. Exmar NV's dividend yield of 89.47% is near a 10-year high and outperforms 99.4% of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Exmar NV's dividend yield and five-year growth rate, the 5-year yield on cost of Exmar NV stock as of today is approximately 89.47%.
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 2024-03-31, Exmar NV's dividend payout ratio is 5.74, which may suggest that the company's dividend may not be sustainable.