Yahoo Finance Neste OYJ's Dividend Analysis
Insight into Neste OYJ's Upcoming Dividend and Financial Health
Neste OYJ (NTOIY) recently announced a dividend of $0.33 per share, payable on 2024-04-24, with the ex-dividend date set for 2024-04-01. 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 Neste OYJ's dividend performance and assess its sustainability.
What Does Neste OYJ Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Neste OYJ, formerly known as Neste Corp., offers renewable products and solutions alongside oil products to a variety of global markets. Its business is divided into segments such as oil products, renewable products, marketing and services, and others. The oil products segment, which includes diesel fuels, gasoline, aviation and marine fuels, and light and heavy fuel oils, is the largest revenue contributor. With a significant presence in the Baltic region through its network of service stations and refinaries, Neste OYJ plays a pivotal role in the energy sector.
A Glimpse at Neste OYJ's Dividend History
Neste OYJ has maintained a consistent dividend payment record since 2012, with dividends currently distributed on a bi-annual basis. The chart below illustrates the annual Dividends Per Share to track historical trends.
Breaking Down Neste OYJ's Dividend Yield and Growth
Neste OYJ currently has a 12-month trailing dividend yield of 4.93% and a 12-month forward dividend yield of 4.29%, indicating an expected decrease in dividend payments over the next year. With a dividend yield near a 10-year high and outperforming 54.14% of global competitors in the Oil & Gas industry, Neste OYJ's dividend yield is notably attractive to income investors.
Over the past three years, Neste OYJ's annual dividend growth rate was 3.50%, which increased to 9.00% per year over a five-year period. The decade-long annual dividends per share growth rate stands at an impressive 22.40%. These figures reflect a robust trajectory in dividend growth, with a 5-year yield on cost of approximately 7.59% for Neste OYJ stock as of today.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one should evaluate the company's payout ratio. Neste OYJ's dividend payout ratio is 0.67 as of 2023-12-31, indicating a balance between distributing earnings as dividends and retaining earnings for growth and stability. Furthermore, Neste OYJ's profitability rank is 8 out of 10, suggesting good profitability prospects. The company's consistent positive net income over the past decade solidifies its financial strength.
Growth Metrics: The Future Outlook
Neste OYJ's growth rank of 8 out of 10 indicates a favorable growth trajectory when compared to its competitors. The company's revenue per share and 3-year revenue growth rate of approximately 25.00% per year outperform 69.16% of global competitors, demonstrating a strong revenue model. The 3-year EPS growth rate of 26.50% per year on average, along with a 5-year EBITDA growth rate of 11.70%, further highlight Neste OYJ's ability to sustain dividends through earnings growth.
Next Steps
In conclusion, Neste OYJ's dividend payments, growth rate, payout ratio, profitability, and growth metrics present a compelling case for value investors. The company's strong financial health and consistent dividend history, coupled with its robust growth prospects, make it an attractive option for those seeking stable income through dividends. As Neste OYJ approaches its next dividend date, investors may consider the company's performance and potential for sustained returns. For value investors eager to find similar opportunities, GuruFocus Premium provides tools like the High Dividend Yield Screener to discover high-yield dividend 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.
This article first appeared on GuruFocus.