Yahoo Finance Northam Platinum Holdings Ltd's Dividend Analysis
Assessing the Upcoming Dividend Payout and Company Fundamentals
Northam Platinum Holdings Ltd (NPTLF) recently announced a dividend of $1 per share, payable on 2024-03-25, with the ex-dividend date set for 2024-03-19. 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 Northam Platinum Holdings Ltd's dividend performance and assess its sustainability.
What Does Northam Platinum Holdings Ltd Do?
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Northam Platinum Holdings Ltd is an integrated producer of platinum group metals. Its primary products are the three PGMs, platinum, palladium, and rhodium. The primary consumers of these metals are the motor manufacturing industry, the jewelry industry, and other industrial sectors. Its segments include Northam Holdings, Zondereinde mine, Booysendal mine, Eland mine, and the US recycling operations.
A Glimpse at Northam Platinum Holdings Ltd's Dividend History
Northam Platinum Holdings Ltd has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a bi-annually basis. However, there is not enough data to calculate the growth rate of the dividend, and as such, we cannot confirm the status of the stock as a dividend king.
Below is a chart showing annual Dividends Per Share for tracking historical trends. Unfortunately, the chart is currently unavailable.
Breaking Down Northam Platinum Holdings Ltd's Dividend Yield and Growth
As of today, Northam Platinum Holdings Ltd currently has a 12-month trailing dividend yield of 5.03% and a 12-month forward dividend yield of 5.86%. This suggests an expectation of increased dividend payments over the next 12 months.
Northam Platinum Holdings Ltd's dividend yield of 5.03% is near a 10-year high and outperforms 73.03% of global competitors in the Metals & Mining industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Northam Platinum Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Northam Platinum Holdings Ltd stock as of today is approximately 5.03%. Please note that the growth rate is currently not applicable due to insufficient data.
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. As of 2023-06-30, Northam Platinum Holdings Ltd's dividend payout ratio is not applicable, indicating no sufficient data to calculate the ratio.
Northam Platinum Holdings Ltd's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Northam Platinum Holdings Ltd's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Northam Platinum Holdings Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Northam Platinum Holdings Ltd's earnings increased by approximately 60.60% per year on average, a rate that outperforms approximately 95.06% of global competitors.
Engaging Conclusion
Northam Platinum Holdings Ltd's dividend payments, coupled with its robust earnings growth and favorable dividend yield, present an intriguing opportunity for value investors seeking income. While the dividend growth rate and payout ratio data are currently not available, the company's strong profitability and growth prospects may indicate potential for future dividend sustainability and growth. As investors consider adding NPTLF to their portfolios, they must weigh these factors alongside their investment objectives and risk tolerance. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener. Will Northam Platinum Holdings Ltd continue to shine as a dividend-paying stock in the years to come?
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.
