Insights on DT Midstream Inc's Upcoming Dividend and Financial Health
DT Midstream Inc (DTM, Financial) recently announced a dividend of $0.74 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-03-15. 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 DT Midstream Inc's dividend performance and assess its sustainability.
What Does DT Midstream Inc Do?
DT Midstream Inc is an owner, operator, and developer of natural gas midstream interstate and intrastate pipelines; storage and gathering systems; and compression, treatment, and surface facilities. It provides multiple, integrated natural gas services to customers through interstate pipelines, intrastate pipelines, storage systems, lateral pipelines and related treatment plants and compression and surface facilities, and gathering systems and related treatment plants and compression and surface facilities. The segments of the group are Pipeline and Gathering. It generates revenue from pipeline, storage, and gathering systems, substantially all of which are located in the Midwestern U.S., Eastern Canada, Northeastern U.S., and Gulf Coast regions.
A Glimpse at DT Midstream Inc's Dividend History
DT Midstream Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down DT Midstream Inc's Dividend Yield and Growth
As of today, DT Midstream Inc currently has a 12-month trailing dividend yield of 4.76% and a 12-month forward dividend yield of 4.84%. This suggests an expectation of increased dividend payments over the next 12 months. Based on DT Midstream Inc's dividend yield and five-year growth rate, the 5-year yield on cost of DT Midstream Inc stock as of today is approximately 4.76%.
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, DT Midstream Inc's dividend payout ratio is 0.70, which may suggest that the company's dividend could be at risk if earnings do not remain stable.
DT Midstream Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks DT Midstream Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 6 out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. DT Midstream Inc'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 DT Midstream Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. DT Midstream Inc's revenue has increased by approximately 6.70% per year on average, a rate that underperforms approximately 63.86% 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, DT Midstream Inc's earnings increased by approximately 6.80% per year on average, a rate that underperforms approximately 63.91% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.50%, which underperforms approximately 48.69% of global competitors.
Next Steps
In conclusion, DT Midstream Inc's dividend payments reflect a history of consistency, with a current yield that is attractive to income-focused investors. However, the payout ratio, while not excessively high, warrants monitoring to ensure future dividends are well-supported by earnings. With a profitability rank that suggests a strong competitive position, and growth metrics that are solid, albeit not industry-leading, DT Midstream Inc appears to be navigating a path that could sustain its dividend payouts. Investors should consider these factors, alongside broader industry and economic trends, when evaluating the stock for their income portfolios. For those seeking to expand their search, 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.
