Diving deep into Thungela Resources Ltd's dividend history, yield, growth rates, and sustainability
Thungela Resources Ltd (TNGRF, Financial) recently announced a dividend of $10 per share, payable on 2023-09-26, with the ex-dividend date set for 2023-09-20. 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 deep dive into Thungela Resources Ltd's dividend performance and assess its sustainability.
A Snapshot of Thungela Resources Ltd
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.
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. Thungela Resources Ltd has increased its dividend each year since -, making it a dividend king, an honor bestowed on companies that have increased their dividend each year for at least the past 2023 years.
Thungela Resources Ltd's Dividend Yield and Growth
As of today, Thungela Resources Ltd currently has a 12-month trailing dividend yield of 61.87% and a 12-month forward dividend yield of 30.49%. 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 61.87%.
Dividend Sustainability: 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 2023-06-30, Thungela Resources Ltd's dividend payout ratio is 1.24, 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 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 3 years out of the past 10 years.
The Future Outlook: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Thungela Resources Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Thungela Resources Ltd's revenue has increased by approximately 39.80% per year on average, a rate that outperforms approximately 76.67% of global competitors.
Conclusion
While Thungela Resources Ltd has a commendable history of dividend payments and growth, the high payout ratio and expected decrease in dividend payments over the next 12 months raise concerns about the sustainability of its dividends. However, the company's profitability rank and growth outlook suggest it has the potential to overcome these challenges. Investors should keep a close eye on these metrics in the coming quarters. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
