An In-Depth Analysis of the Dividend Performance and Sustainability of Civitas Resources Inc (CIVI, Financial)
Civitas Resources Inc (CIVI) recently announced a dividend of $1.74 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. As investors anticipate this forthcoming payment, the company's dividend history, yield, and growth rates are also under the limelight. Using data from GuruFocus, we delve into Civitas Resources Inc's dividend performance and evaluate its sustainability.
Company Overview: Civitas Resources Inc
Civitas Resources Inc is an independent exploration and production company involved in the acquisition, development, and production of oil and associated liquids-rich natural gas in the Rocky Mountain region, specifically in the Denver-Julesburg Basin of Colorado (DJ Basin). The company's operations focus on developing the horizontal Niobrara and Codell formations, characterized by a low-cost structure, mature infrastructure, production efficiencies, multiple producing horizons, multiple service providers, established reserves, and prospective drilling opportunities.
Tracing Civitas Resources Inc's Dividend History
Since 2021, Civitas Resources Inc has upheld a consistent dividend payment record, distributing dividends on a quarterly basis. The annual Dividends Per Share chart below provides a historical perspective.
Deciphering Civitas Resources Inc's Dividend Yield and Growth
As of today, Civitas Resources Inc boasts a 12-month trailing dividend yield of 4.23% and a 12-month forward dividend yield of 8.27%, indicating an anticipated increase in dividend payments over the next 12 months. The 5-year yield on cost of Civitas Resources Inc stock stands at approximately 4.23% today.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to examine the company's payout ratio. The dividend payout ratio of Civitas Resources Inc, as of 2023-06-30, is 0.29, suggesting a significant retention of earnings for future growth and contingencies. The company's profitability rank of 6 out of 10 indicates fair profitability, with net profit reported in 5 out of the past 10 years.
Gauging Future Outlook: Growth Metrics
Strong growth metrics are essential for ensuring dividend sustainability. Civitas Resources Inc's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model, with a revenue increase of approximately 43.00% per year on average, outperforming around 90.43% of global competitors. The 3-year EPS growth rate of approximately 65.10% per year on average further underscores Civitas Resources Inc's ability to grow its earnings, a vital element for sustaining dividends long-term.
Conclusion
Overall, Civitas Resources Inc's consistent dividend payments, promising growth rate, reasonable payout ratio, and fair profitability and growth metrics present a positive outlook for the sustainability of its dividends. However, as with any investment, it's crucial to conduct thorough research and consider various factors before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
