In This Article:
Understanding Thungela Resources Ltd's Dividend Payout and Its Sustainability
Thungela Resources Ltd (TNGRF) recently announced a dividend of $10 per share, payable on 2024-04-22, with the ex-dividend date set for 2024-04-17. 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 Thungela Resources Ltd's dividend performance and assess its sustainability.
What Does Thungela Resources Ltd Do?
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Thungela Resources Ltd is a pure-play producer and exporter of thermal coal in South Africa. It owns interests in various mining operations, namely Goedehoop, Greenside, Isibonelo, Khwezela, AAIC, Mafube Coal Mining and Butsanani Energy which consist of both underground and open cast mines located in the Mpumalanga province of South Africa.
A Glimpse at Thungela Resources Ltd's Dividend History
Thungela Resources Ltd 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 Thungela Resources Ltd's Dividend Yield and Growth
As of today, Thungela Resources Ltd currently has a 12-month trailing dividend yield of 34.90% and a 12-month forward dividend yield of 13.57%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Thungela Resources Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Thungela Resources Ltd stock as of today is approximately 34.90%.
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, Thungela Resources Ltd's dividend payout ratio is 1.45, which may suggest that the company's dividend may not be sustainable. Thungela Resources Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Thungela Resources Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 4 years out of the past 10 years.