OMV AG's Dividend Analysis
Exploring the Sustainability and Growth of OMV AG's Dividends
Introduction to OMV AG's Recent Dividend Announcement
OMV AG (OMVKY) recently announced a dividend of $0.78 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-06-06. 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 OMV AG's dividend performance and assess its sustainability.
What Does OMV AG Do?
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OMV AG is an international, integrated oil and gas company that operates in the Energy, Fuels and Feedstock, and Chemicals & Materials segments. The company has exploration and production assets in a multitude of countries in Europe, Asia, and Africa. The Energy segment engages in the business of oil and gas exploration, development and production. The Fuels and Feedstock segment which generates key revenue, refines and markets crude oil and other feedstock. The Chemicals & Materials (C&M) segment provides circular polyolefin solutions and base chemicals, fertilizers, and plastics recycling. Geographically, the company generates a majority of its revenue from Austria and the rest from its operations in Germany, Romania, Norway, and other regions.
A Glimpse at OMV AG's Dividend History
OMV AG has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down OMV AG's Dividend Yield and Growth
As of today, OMV AG currently has a 12-month trailing dividend yield of 5.98% and a 12-month forward dividend yield of 6.22%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, OMV AG's annual dividend growth rate was 17.00%. Extended to a five-year horizon, this rate decreased to 12.10% per year. And over the past decade, OMV AG's annual dividends per share growth rate stands at 8.90%.
Based on OMV AG's dividend yield and five-year growth rate, the 5-year yield on cost of OMV AG stock as of today is approximately 10.59%.
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, OMV AG's dividend payout ratio is 0.45.
OMV AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks OMV AG's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. OMV AG's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and OMV AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. OMV AG's revenue has increased by approximately 33.60% per year on average, a rate that outperforms approximately 79.67% of global competitors.
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, OMV AG's earnings increased by approximately -2.30% per year on average, a rate that outperforms approximately 28.01% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.40%, which outperforms approximately 49.64% of global competitors.
Conclusion: Evaluating OMV AG's Dividend Sustainability
With a solid track record of dividend payments, a robust yield, and strong growth metrics, OMV AG presents an appealing case for dividend-seeking investors. The company's strategic positioning in multiple segments, combined with a consistent dividend history and promising growth outlook, supports the sustainability of its dividend payments. Investors should consider these factors when assessing OMV AG as a potential addition to their investment portfolios. 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.