Assessing the Sustainability and Growth of Wheaton Precious Metals Corp's Dividends
Wheaton Precious Metals Corp (WPM, Financial) recently announced a dividend of $0.15 per share, payable on 2023-12-08, with the ex-dividend date set for 2023-11-27. 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 Wheaton Precious Metals Corp's dividend performance and assess its sustainability.
What Does Wheaton Precious Metals Corp Do?
Wheaton Precious Metals Corp is a precious metal streaming company. The company has entered into over 20 long-term purchase agreements with 17 different mining companies, for the purchase of precious metals and cobalt. It has streaming agreements covering approximately 19 operating mines and 9 development stage projects. The company's projects include Vale's Salobo mine and silver streams on Glencore's Antamina mine and Goldcorp's Penasquito mine.
A Glimpse at Wheaton Precious Metals Corp's Dividend History
Wheaton Precious Metals Corp has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Wheaton Precious Metals Corp's Dividend Yield and Growth
As of today, Wheaton Precious Metals Corp currently has a 12-month trailing dividend yield of 1.26% and a 12-month forward dividend yield of 1.26%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Wheaton Precious Metals Corp's annual dividend growth rate was 19.80%. Extended to a five-year horizon, this rate decreased to 14.30% per year. And over the past decade, Wheaton Precious Metals Corp's annual dividends per share growth rate stands at 8.90%.
Based on Wheaton Precious Metals Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Wheaton Precious Metals Corp stock as of today is approximately 2.46%.
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 2023-09-30, Wheaton Precious Metals Corp's dividend payout ratio is 0.51.
Wheaton Precious Metals Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wheaton Precious Metals Corp's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 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. Wheaton Precious Metals Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Wheaton Precious Metals Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wheaton Precious Metals Corp's revenue has increased by approximately 8.00% per year on average, a rate that underperforms than approximately 59.7% 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, Wheaton Precious Metals Corp's earnings increased by approximately 28.50% per year on average, a rate that underperforms than approximately 26.49% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 21.20%, which underperforms than approximately 34.57% of global competitors.
Engaging Conclusion: Wheaton Precious Metals Corp's Dividend Prospects
In conclusion, Wheaton Precious Metals Corp's consistent dividend payments, impressive historical growth rates, and a moderate payout ratio indicate a sustainable dividend policy. However, while the company's profitability is robust, its growth metrics present a mixed picture with some rates underperforming against global competitors. Investors should consider these factors in the context of their investment strategy and the overall performance of the precious metals industry. Will Wheaton Precious Metals Corp's dividends continue to glitter for investors in the future? That remains a question worth pondering as we observe the company's strategic moves and market dynamics.
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.
