An Investor's Guide to Barrick Gold Corp's Upcoming Dividend
Barrick Gold Corp (GOLD, Financial) recently announced a dividend of $0.1 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-29. 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 Barrick Gold Corp's dividend performance and assess its sustainability.
What Does Barrick Gold Corp Do?
Based in Toronto, Barrick Gold Corp is one of the world's largest gold miners. In 2022, the firm produced nearly 4.1 million attributable ounces of gold and about 440 million pounds of copper. At the end of 2022, Barrick Gold Corp had approximately two decades of gold reserves and significant copper reserves. After acquiring Randgold in 2019 and forming a joint venture with Newmont, it operates mines in 19 countries across the Americas, Africa, the Middle East, and Asia. The company's Reko Diq project in Pakistan, if developed, could be a game-changer, potentially doubling copper production by the decade's end.
A Glimpse at Barrick Gold Corp's Dividend History
Barrick Gold Corp has maintained a consistent dividend payment record since 1987, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Barrick Gold Corp's Dividend Yield and Growth
As of today, Barrick Gold Corp currently has a 12-month trailing dividend yield of 2.71% and a 12-month forward dividend yield of 2.39%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Barrick Gold Corp's annual dividend growth rate was 41.60%, decreasing to 38.90% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at 2.00%. Based on the dividend yield and five-year growth rate, the 5-year yield on cost of Barrick Gold Corp stock as of today is approximately 14.01%.
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, Barrick Gold Corp's dividend payout ratio is 15.00, which may suggest that the company's dividend could be sustainable. Barrick Gold Corp's profitability rank of 7 out of 10, as of 2023-09-30, suggests good profitability prospects. The company has reported net profit in 6 out of the past 10 years.
Growth Metrics: The Future Outlook
Barrick Gold Corp'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 Barrick Gold Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Barrick Gold Corp's revenue has increased by approximately 5.10% per year on average, a rate that underperforms approximately 66.44% 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, Barrick Gold Corp's earnings increased by approximately -22.90% per year on average, a rate that underperforms approximately 77.66% of global competitors.
Next Steps
In conclusion, Barrick Gold Corp's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and strong profitability rank paint a positive picture for investors seeking reliable income. However, the company's recent underperformance in revenue and earnings growth relative to global competitors warrants careful monitoring. Investors should consider these factors in their overall assessment of Barrick Gold Corp's dividend sustainability and growth prospects. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a valuable tool with 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.
