Assessing the Sustainability and Growth of Thai Oil PCL's Dividends
Thai Oil PCL (TOIPY, Financial) recently announced a dividend of $0.76 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-02-27. 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 Thai Oil PCL's dividend performance and assess its sustainability.
What Does Thai Oil PCL Do?
Thai Oil PCL is a refiner and supplier of petroleum products. Based out of Thailand, the company's refinery unit produces the most revenue of its various business segments. Thai Oil's refined products primarily consist of middle-distillation fuels such as jet fuel, kerosene, and diesel fuel. Once refined, petroleum products can be transported by the midstream business, Thai Petroleum Pipeline. In addition to the transportation and refinery segments, Thai Oil produces aromatics, which are used in products like detergent. Power generation, alternative energy, and chemical production are also byproducts of Thai Oil and its many subsidiaries.
A Glimpse at Thai Oil PCL's Dividend History
Thai Oil PCL has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Thai Oil PCL's Dividend Yield and Growth
As of today, Thai Oil PCL currently has a 12-month trailing dividend yield of 4.91% and a 12-month forward dividend yield of 6.83%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Thai Oil PCL's annual dividend growth rate was 67.70%. Extended to a five-year horizon, this rate decreased to -3.30% per year. And over the past decade, Thai Oil PCL's annual dividends per share growth rate stands at -2.90%.
Based on Thai Oil PCL's dividend yield and five-year growth rate, the 5-year yield on cost of Thai Oil PCL stock as of today is approximately 4.15%.
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 2023-12-31, Thai Oil PCL's dividend payout ratio is 0.25.
Thai Oil PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Thai Oil PCL's profitability 7 out of 10 as of 2023-12-31, 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. Thai Oil PCL'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 Thai Oil PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Thai Oil PCL's revenue has increased by approximately 20.10% per year on average, a rate that outperforms approximately 67.29% of global competitors.
Concluding Insights on Thai Oil PCL's Dividend Profile
For value investors considering Thai Oil PCL, the company's consistent dividend payments, compelling dividend growth rate, and cautious payout ratio paint a picture of a sustainable income stock. Coupled with a solid profitability rank and promising growth metrics, Thai Oil PCL appears to be a strong candidate for investors seeking dividend reliability and growth potential. As the energy sector continues to evolve, the company's diversified operations and strategic initiatives may further bolster its financial health and ability to maintain, or even increase, its dividends. Will Thai Oil PCL continue to be a beacon of stability for dividend-seeking investors? Only time will tell, but the current indicators suggest a positive trajectory. 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.
