Yahoo Finance Thungela Resources Ltd's Dividend Analysis
Understanding Thungela Resources Ltd's Dividend Payout and Its Sustainability
Thungela Resources Ltd (TNGRF) recently announced a dividend of $10 per share, payable on 2024-04-22, with the ex-dividend date set for 2024-04-17. 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 Thungela Resources Ltd's dividend performance and assess its sustainability.
What Does Thungela Resources Ltd Do?
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Thungela Resources Ltd is a pure-play producer and exporter of thermal coal in South Africa. It owns interests in various mining operations, namely Goedehoop, Greenside, Isibonelo, Khwezela, AAIC, Mafube Coal Mining and Butsanani Energy which consist of both underground and open cast mines located in the Mpumalanga province of South Africa.
A Glimpse at Thungela Resources Ltd's Dividend History
Thungela Resources Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Thungela Resources Ltd's Dividend Yield and Growth
As of today, Thungela Resources Ltd currently has a 12-month trailing dividend yield of 34.90% and a 12-month forward dividend yield of 13.57%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Thungela Resources Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Thungela Resources Ltd stock as of today is approximately 34.90%.
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, Thungela Resources Ltd's dividend payout ratio is 1.45, which may suggest that the company's dividend may not be sustainable. Thungela Resources Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Thungela Resources Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Thungela Resources Ltd'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 Thungela Resources Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Thungela Resources Ltd's revenue has increased by approximately 99.70% per year on average, a rate that outperforms approximately 91.74% of global competitors.
Concluding Thoughts on Thungela Resources Ltd's Dividend Outlook
In conclusion, while Thungela Resources Ltd's dividend yield is attractive, the potential decrease in dividend payments and the current payout ratio raise questions about the long-term sustainability of these dividends. However, the company's strong profitability rank and impressive growth metrics provide some reassurance about its financial health and ability to maintain, if not grow, dividends in the future. Value investors should consider these factors in their analysis of Thungela Resources Ltd as a potential investment. Will Thungela Resources Ltd continue to provide substantial returns to its shareholders, or will the company need to adjust its dividend strategy? Only time will tell.
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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.
This article first appeared on GuruFocus.
