A Comprehensive Analysis of Sibanye Stillwater Ltd's Dividend Performance and Sustainability
South Africa-based mining company, Sibanye Stillwater Ltd (SBSW, Financial), recently announced a dividend of $0.11 per share, scheduled for payment on October 6, 2023. With the ex-dividend date set for September 21, 2023, investors are keenly observing the company's dividend history, yield, and growth rates. This article leverages GuruFocus data to delve into Sibanye Stillwater Ltd's dividend performance and evaluate its sustainability.
About Sibanye Stillwater Ltd
Sibanye Stillwater Ltd operates five underground and surface gold operations in South Africa, including the Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. The company also owns and manages extraction and processing facilities at its operations, where gold-bearing ore is treated and beneficiated to produce gold dore. The gold dore is further refined at Rand Refinery into gold bars with a purity of at least 99.5% and then sold on international markets. Sibanye holds a 44% interest in Rand Refinery, one of the world's largest gold refiners.
Sibanye Stillwater Ltd's Dividend History
Since 2020, Sibanye Stillwater Ltd has maintained a consistent dividend payment record, with dividends currently distributed bi-annually. The chart below shows the annual Dividends Per Share for tracking historical trends.
Sibanye Stillwater Ltd's Dividend Yield and Growth
As of today, Sibanye Stillwater Ltd has a 12-month trailing dividend yield of 8.45% and a 12-month forward dividend yield of 5.51%, suggesting a potential decrease in dividend payments over the next 12 months. Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Sibanye Stillwater Ltd stock as of today is approximately 8.45%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend can be evaluated by examining 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 June 30, 2023, Sibanye Stillwater Ltd's dividend payout ratio is 0.53.
Sibanye Stillwater Ltd's profitability rank is 8 out of 10 as of June 30, 2023, suggesting good profitability prospects. The company has reported net profit in 8 out of the past 10 years.
Future Outlook: Growth Metrics
A company must have robust growth metrics to ensure the sustainability of dividends. Sibanye Stillwater Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Sibanye Stillwater Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. The company's revenue has increased by approximately 20.00% per year on average, outperforming approximately 69.19% 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, Sibanye Stillwater Ltd's earnings increased by approximately 587.50% per year on average, outperforming approximately 99.94% of global competitors.
Conclusion
Considering Sibanye Stillwater Ltd's consistent dividend payments, robust dividend growth rate, reasonable payout ratio, good profitability, and strong growth metrics, the company appears to have a sustainable dividend policy. However, investors should always conduct their own analysis and consider the company's future prospects before making investment decisions. For those interested in high-dividend yield stocks, GuruFocus Premium users can use the High Dividend Yield Screener.
