Understanding SAND's Dividend Performance and Sustainability
Sandstorm Gold Ltd (SAND, Financial) recently announced a dividend of $0.02 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-16. 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 delve into Sandstorm Gold Ltd's dividend performance and assess its sustainability.
What Does Sandstorm Gold Ltd Do?
Sandstorm Gold Ltd provides financing to companies engaged in gold mining through gold stream and royalty. Geographically, the company has operational footprints in North America, South & Central America, Africa, and Asia & Australia. Its royalties include Hod Maden, Santa Elena, Chapada, and Cerro Moro.
A Glimpse at Sandstorm Gold Ltd's Dividend History
Sandstorm Gold Ltd has maintained a consistent dividend payment record since 2022, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since -, earning the title of a dividend king - an honor bestowed to companies that have increased their dividend each year for at least the past 2023 years. The chart below shows annual Dividends Per Share for tracking historical trends.
Breaking Down Sandstorm Gold Ltd's Dividend Yield and Growth
As of today, Sandstorm Gold Ltd currently has a 12-month trailing dividend yield of 1.25% and a 12-month forward dividend yield of 1.24%. This suggests an expectation of decreased dividend payments over the next 12 months. However, Sandstorm Gold Ltd's dividend yield of 1.25% is near a 10-year high and outperforms 22.12% of global competitors in the Metals & Mining industry, indicating that the company's dividend yield is a compelling proposition for income investors.
Based on Sandstorm Gold Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sandstorm Gold Ltd stock as of today is approximately 1.25%.
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 2023-06-30, Sandstorm Gold Ltd's dividend payout ratio is 0.43.
Sandstorm Gold Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sandstorm Gold Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Sandstorm Gold 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 Sandstorm Gold Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sandstorm Gold Ltd's revenue has increased by approximately 11.70% per year on average, a rate that outperforms approximately 50.25% 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, Sandstorm Gold Ltd's earnings increased by approximately 55.60% per year on average, a rate that outperforms approximately 91.3% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 45.10%, outperforms approximately 92% of global competitors.
Conclusion
Given Sandstorm Gold Ltd's consistent dividend payments, impressive growth rate, reasonable payout ratio, and strong profitability, the company presents a compelling case for income investors seeking sustainable dividends. However, as with any investment, it's essential to consider the broader picture, including industry trends and the company's overall financial health. 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.
