Assessing the Dividend Performance of Murphy Oil Corp
Murphy Oil Corp (MUR, Financial) recently announced a dividend of $0.3 per share, payable on 2024-03-04, with the ex-dividend date set for 2024-02-16. 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 Murphy Oil Corp's dividend performance and assess its sustainability.
What Does Murphy Oil Corp Do?
Murphy Oil Corp is an independent exploration and production company developing unconventional resources in the United States and Canada. At the end of 2022, the company reported net proved reserves of 697 million barrels of oil equivalent, with a composition of 62% oil and natural gas liquids and 38% natural gas.
A Glimpse at Murphy Oil Corp's Dividend History
Murphy Oil Corp has maintained a consistent dividend payment record since 1984, with distributions currently made on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Murphy Oil Corp's Dividend Yield and Growth
Murphy Oil Corp currently has a trailing dividend yield of 2.79% and a forward dividend yield of 3.03%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 20.70%. However, looking at a five-year horizon, this rate decreased to -0.90% per year, and over the past decade, the annual dividends per share growth rate stands at -6.10%.
Considering Murphy Oil Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Murphy Oil Corp stock as of today is approximately 2.67%.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of Murphy Oil Corp's dividend involves examining the dividend payout ratio, which is 0.24 as of 2023-12-31. This indicates a healthy balance between distributing earnings and retaining funds for future growth. Additionally, Murphy Oil Corp's profitability rank is 7 out of 10, suggesting good profitability prospects, with net profit reported in 5 out of the past 10 years.
Growth Metrics: The Future Outlook
The company's growth rank of 7 out of 10 indicates a favorable growth trajectory. Murphy Oil Corp's revenue per share and 3-year revenue growth rate show a strong revenue model, with an average annual increase of approximately 24.50%, outperforming about 75% of global competitors.
Engaging Conclusion
In conclusion, Murphy Oil Corp's consistent dividend payments, along with a sensible payout ratio, robust profitability, and promising growth metrics, paint a positive picture for value investors. The company's ability to sustain and potentially grow its dividend makes it a noteworthy consideration for those seeking income-generating investments. As the energy sector continues to evolve, will Murphy Oil Corp's strategic position enable it to maintain its dividend attractiveness? For investors seeking high-dividend yield opportunities, GuruFocus Premium offers a High Dividend Yield Screener to discover similar stocks.
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.
