Yahoo Finance Hess Corp's Dividend Analysis
Insight into Hess Corp's Dividend Sustainability and Growth
Hess Corp (NYSE:HES) recently announced a dividend of $0.44 per share, payable on 2024-06-28, with the ex-dividend date set for 2024-06-14. 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 Hess Corp's dividend performance and assess its sustainability.
What Does Hess Corp Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.
A Glimpse at Hess Corp's Dividend History
Hess Corp has maintained a consistent dividend payment record since 1987. Dividends are currently distributed on a quarterly basis. Hess Corp has increased its dividend each year since 2007, earning it the status of a dividend achiever, a distinction given to companies that have increased their dividends annually for at least the past 17 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hess Corp's Dividend Yield and Growth
As of today, Hess Corp currently has a 12-month trailing dividend yield of 1.22% and a 12-month forward dividend yield of 1.22%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Hess Corp's annual dividend growth rate was 20.50%. Extended to a five-year horizon, this rate decreased to 12.20% per year. And over the past decade, Hess Corp's annual dividends per share growth rate stands at 5.80%.
Based on Hess Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Hess Corp stock as of today is approximately 2.17%.
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, Hess Corp's dividend payout ratio is 0.25. Hess Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hess Corp's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hess Corp's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Hess Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hess Corp's revenue has increased by approximately 30.70% per year on average, a rate that outperforms approximately 74.33% of global competitors.
Conclusion: Assessing Hess Corp's Dividend Prospects
Given Hess Corp's consistent dividend increases, stable yields, and manageable payout ratios, the company presents a compelling case for dividend investors. The financial health implied by its profitability and growth metrics further reassures investors of its ability to sustain dividend payments. For those seeking dividend growth stocks, Hess Corp stands out as a viable candidate. 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.
