Understanding the Sustainability and Growth of Parkland Corp's Dividends
Parkland Corp (PKIUF, Financial) recently announced a dividend of $0.34 per share, payable on 2023-10-13, with the ex-dividend date set for 2023-09-21. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Parkland Corp's dividend performance and assess its sustainability.
A Snapshot of Parkland Corp
Parkland Corp is a food and convenience retailer and an independent marketer, distributor, and refiner of fuel and petroleum products. The company delivers refined fuels, propane, and other high-quality petroleum products to motorists, businesses, consumers, and wholesale customers across the Americas. Its operations span from retail service stations, including EV charging stations, convenience and food stores, card lock sites, bulk fuel, propane, heating oil, lubricants, and other related services to the operations of the Burnaby Refinery.
Unraveling Parkland Corp's Dividend History
Parkland Corp has upheld a consistent dividend payment record since 2011, with dividends currently distributed on a quarterly basis. The chart below shows the company's annual Dividends Per Share for tracking historical trends.
Dissecting Parkland Corp's Dividend Yield and Growth
As of today, Parkland Corp boasts a 12-month trailing dividend yield of 3.42% and a 12-month forward dividend yield of 3.46%. This indicates an expectation of increased dividend payments over the next 12 months. Over the past three years, Parkland Corp's annual dividend growth rate was 2.70%, increasing to 3.40% per year over a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at 2.30%. Based on these figures, the 5-year yield on cost of Parkland Corp stock as of today is approximately 4.04%.
Assessing Sustainability: Payout Ratio and Profitability
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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Parkland Corp's dividend payout ratio is 0.69. Furthermore, Parkland Corp's profitability rank stands at 8 out of 10, indicating good profitability prospects. The company has reported positive net income for each of the years over the past decade, further solidifying its high profitability.
Exploring Growth Metrics: The Future Outlook
Parkland Corp's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. The company's robust revenue per share and 3-year revenue growth rate indicate a strong revenue model. Over the past three years, Parkland Corp's earnings, as indicated by its 3-year EPS growth rate, have increased by approximately -9.00% per year on average. The company's 5-year EBITDA growth rate is 2.80%.
Concluding Remarks
In conclusion, Parkland Corp's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a promising picture for value investors. Its consistent dividend payments coupled with a robust growth trajectory underscore its potential as a dividend stock. However, investors should continue to monitor these metrics to ensure the sustainability of dividends in the long run. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
