Understanding PetroChina Co Ltd's Dividend History, Yield, and Growth Rates
PetroChina Co Ltd (PCCYF, Financial) recently announced a dividend of $0.23 per share, payable on 2023-10-30, with the ex-dividend date set for 2023-09-12. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into PetroChina Co Ltd's dividend performance and assess its sustainability.
What Does PetroChina Co Ltd Do?
PetroChina, the national champion that inherited the majority of Chinese onshore oil and gas assets, has evolved into an international supermajor. In 2022, it produced over 1.6 billion barrels of oil equivalent of oil and gas, with more than 1.4 billion barrels of annual crude oil primary distillation capacity and over 22,000 service stations. PetroChina's revenue is significantly impacted by fluctuations in the prices of crude oil, refined products, chemical products, and natural gas. State-owned China National Petroleum Corp is PetroChina's controlling shareholder with a stake of over 80%.
A Glimpse at PetroChina Co Ltd's Dividend History
PetroChina Co Ltd has maintained a consistent dividend payment record since 2010, with dividends currently distributed bi-annually. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PetroChina Co Ltd's Dividend Yield and Growth
As of today, PetroChina Co Ltd has a 12-month trailing dividend yield of 7.96% and a 12-month forward dividend yield of 7.89%, indicating an expectation of decreased dividend payments over the next 12 months.
Over the past three years, PetroChina Co Ltd's annual dividend growth rate was 28.80%. This rate increased to 36.60% per year over a five-year horizon. However, over the past decade, PetroChina Co Ltd's annual dividends per share growth rate stands at -3.20%.
Based on PetroChina Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of PetroChina Co Ltd stock as of today is approximately 37.86%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, one must examine the company's payout ratio. The dividend payout ratio offers 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, PetroChina Co Ltd's dividend payout ratio is 0.52.
PetroChina Co Ltd's profitability rank of 7 out of 10, as of 2023-06-30, suggests good profitability prospects. The company has reported positive net income each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
PetroChina Co Ltd's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 8.80%. However, this rate underperforms approximately 53.34% 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, PetroChina Co Ltd's earnings increased by approximately 48.60% per year on average, a rate that underperforms approximately 25% of global competitors.
The company's 5-year EBITDA growth rate of 32.80% underperforms approximately 16.85% of global competitors.
Conclusion
In conclusion, PetroChina Co Ltd has demonstrated a consistent dividend payment record, impressive yield, and growth rates. However, investors should keep an eye on the company's payout ratio, profitability, and growth metrics to ensure the sustainability of future dividends. Will PetroChina Co Ltd continue its dividend performance trend? Only time will tell. Meanwhile, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
