Yahoo Finance Cenovus Energy Inc's Dividend Analysis
Exploring the Dividend Profile of Cenovus Energy Inc (NYSE:CVE)
Introduction to Cenovus Energy Inc's Dividend
Cenovus Energy Inc (NYSE:CVE) recently announced a dividend of $0.18 per share, payable on 2024-06-28, with the ex-dividend date set for 2024-06-14. As investors eagerly anticipate this upcoming payment, it is crucial to delve into the company's dividend history, yield, and growth rates. This analysis utilizes data from GuruFocus to evaluate the performance and sustainability of Cenovus Energy Inc's dividends.
What Does Cenovus Energy Inc Do?
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Cenovus Energy Inc is an integrated oil company, primarily engaged in the development of its oil sands assets. The company also produces conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, and has refining operations in the U.S. In 2022, its net upstream production averaged 786 thousand barrels of oil equivalent per day. Cenovus Energy Inc has upstream projects across Western Canada and offshore operations in China and Indonesia. Its downstream activities include upgrading, refining operations in Canada and the U.S., and commercial fuel operations across Canada.
A Glimpse at Cenovus Energy Inc's Dividend History
Cenovus Energy Inc has maintained a steady dividend payment record since 2009, distributing dividends quarterly. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Cenovus Energy Inc's Dividend Yield and Growth
Cenovus Energy Inc currently boasts a 12-month trailing dividend yield of 2.25% and a 12-month forward dividend yield of 2.89%, indicating an expected increase in dividend payments over the next year. Over the past three years, the annual dividend growth rate was an impressive 102.70%, though this rate moderated to 23.90% per year over a five-year period. However, the decade-long annual growth rate stands at -13.10%. The 5-year yield on cost for Cenovus Energy Inc stock is approximately 6.57% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Cenovus Energy Inc's dividends can be assessed by examining the company's dividend payout ratio, which is currently 0.22. This low ratio indicates that the company retains a significant portion of its earnings, which supports future growth and buffers against downturns. Additionally, Cenovus Energy Inc's profitability rank is 6 out of 10, reflecting fair profitability with net profit reported in 7 out of the last 10 years.
Growth Metrics: The Future Outlook
The future sustainability of dividends also hinges on robust growth metrics. Cenovus Energy Inc's growth rank is 6 out of 10, indicative of a fair growth outlook. The company's revenue per share and the 3-year revenue growth rate of 36.50% per year surpasses approximately 81.8% of global competitors, demonstrating a strong revenue model.
Conclusion
Investors in Cenovus Energy Inc can look forward to a promising dividend profile characterized by a consistent payment history, robust dividend growth, and a sustainable payout ratio. The company's solid profitability and favorable growth metrics further bolster confidence in its ability to maintain and potentially increase dividend distributions in the future. For those interested in exploring other high-dividend yield opportunities, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
