Assessing the Performance and Sustainability of Freeport-McMoRan Inc's Dividend
Freeport-McMoRan Inc (FCX, Financial) recently announced a dividend of $0.15 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-12. As investors eagerly anticipate this upcoming payment, focus is also cast on the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, let's delve into Freeport-McMoRan Inc's dividend performance and evaluate its sustainability.
What Does Freeport-McMoRan Inc Do?
Freeport-McMoRan Inc is an international mining company with geographically diverse assets of copper, gold, and molybdenum. The company's portfolio includes the Grasberg minerals district in Indonesia; mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. Key revenue is derived from the sale of Copper.
A Glimpse at Freeport-McMoRan Inc's Dividend History
Freeport-McMoRan Inc has maintained a consistent dividend payment record since 2018, distributing dividends on a quarterly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Breaking Down Freeport-McMoRan Inc's Dividend Yield and Growth
Currently, Freeport-McMoRan Inc has a 12-month trailing dividend yield and a 12-month forward dividend yield of 1.60%, indicating an expected consistency in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 44.20%. Based on these metrics, the 5-year yield on cost of Freeport-McMoRan Inc stock is approximately 1.60% as of today.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of a dividend requires a review of 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, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Freeport-McMoRan Inc's dividend payout ratio is 0.41.
Freeport-McMoRan Inc's profitability rank of 7 out of 10 suggests good profitability prospects. The company has reported net profit in 6 years out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Freeport-McMoRan Inc's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Freeport-McMoRan Inc's revenue has increased by approximately 16.50% per year on average, a rate that outperforms approximately 61.64% of global competitors.
Next Steps
Considering Freeport-McMoRan Inc's consistent dividend payments, impressive dividend growth rate, reasonable payout ratio, and good profitability and growth metrics, the company presents a compelling case for dividend-focused investors. However, investors should continue to monitor these metrics to ensure the sustainability of the dividends. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
