Exploring the Dividend Prospects of Vibra Energia SA
Vibra Energia SA (PETRY, Financial) recently announced a dividend of $0.17 per share, payable on 2024-06-13, with the ex-dividend date set for 2023-12-29. 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 Vibra Energia SA's dividend performance and assess its sustainability.
What Does Vibra Energia SA Do?
Vibra Energia SA is engaged in the marketing and distribution of fuel and lubricants. The company's operating segments include Retail; Consumer Market; Aviation Market and Special Market. It generates maximum revenue from the Retail segment. The business activities of the company include distribution, transportation, distribution and trading of all energy forms, chemical products and asphalt, provision of related services, and importing and exporting related items.
A Glimpse at Vibra Energia SA's Dividend History
Vibra Energia SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Vibra Energia SA's Dividend Yield and Growth
As of today, Vibra Energia SA currently has a 12-month trailing dividend yield of 3.36% and a 12-month forward dividend yield of 3.52%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Vibra Energia SA's annual dividend growth rate was -31.60%. Based on Vibra Energia SA's dividend yield and five-year growth rate, the 5-year yield on cost of Vibra Energia SA stock as of today is approximately 3.36%.
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, Vibra Energia SA's dividend payout ratio is 0.46. Vibra Energia SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Vibra Energia SA's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 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. Vibra Energia SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Vibra Energia SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Vibra Energia SA's revenue has increased by approximately 25.70% per year on average, a rate that outperforms approximately 86.79% 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, Vibra Energia SA's earnings increased by approximately -12.60% per year on average, a rate that outperforms approximately 23.68% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 2.60%, which outperforms approximately 37.28% of global competitors.
Concluding Thoughts on Vibra Energia SA's Dividend Outlook
In conclusion, Vibra Energia SA's upcoming dividend payment, historical dividend consistency, and current yields point to an attractive proposition for income-focused investors. While the past dividend growth rate presents some concerns, the company's solid payout ratio and profitability rank indicate a capacity to maintain its dividend distributions. Furthermore, the promising growth metrics, including a strong revenue model and a competitive EBITDA growth rate, suggest that Vibra Energia SA is well-positioned for future financial success. Investors considering Vibra Energia SA for its dividend prospects should weigh these factors carefully, aligning them with their investment strategy and risk tolerance. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.
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.
