Exploring the Sustainability and Growth of Dividends at Barrick Gold Corp
Barrick Gold Corp (NYSE:GOLD) recently announced a dividend of $0.1 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-05-31. 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 Barrick Gold Corp’s dividend performance and assess its sustainability.
What Does Barrick Gold Corp Do?
Based in Toronto, Barrick Gold is one of the world’s largest gold miners. In 2023, the firm produced nearly 4.1 million attributable ounces of gold and about 420 million pounds of copper. At year-end 2023, Barrick had about two decades of gold reserves along with significant copper reserves. After buying Randgold in 2019 and combining its Nevada mines in a joint venture with competitor Newmont later that year, it operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia. The company also has growing copper exposure. Its potential Reko Diq project in Pakistan, if developed, could double copper production by the end of the decade.
A Glimpse at Barrick Gold Corp’s Dividend History
Barrick Gold Corp has maintained a consistent dividend payment record since 1987. Dividends are currently distributed on a quarterly basis.
Breaking Down Barrick Gold Corp’s Dividend Yield and Growth
As of today, Barrick Gold Corp currently has a 12-month trailing dividend yield of 2.33% and a 12-month forward dividend yield of 2.33%, suggesting an expectation of same dividend payments over the next 12 months.
Over the past three years, Barrick Gold Corp’s annual dividend growth rate was 10.60%. Extended to a five-year horizon, this rate increased to 32.30% per year. And over the past decade, Barrick Gold Corp’s annual dividends per share growth rate stands at an impressive 10.70%.
Based on Barrick Gold Corp’s dividend yield and five-year growth rate, the 5-year yield on cost of Barrick Gold Corp stock as of today is approximately 9.44%.
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. As of 2024-03-31, Barrick Gold Corp’s dividend payout ratio is 0.47.
Barrick Gold Corp’s profitability rank, offers an understanding of the company’s earnings prowess relative to its peers. GuruFocus ranks Barrick Gold Corp’s profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Barrick Gold Corp’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 Barrick Gold Corp’s revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Barrick Gold Corp’s revenue has increased by approximately -1.30% per year on average, a rate that underperforms than approximately 76.3% 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, Barrick Gold Corp’s earnings increased by approximately -12.20% per year on average, a rate that underperforms than approximately 68.78% of global competitors.
Conclusion
Barrick Gold Corp’s consistent dividend payments and robust growth metrics highlight its commitment to returning value to shareholders. Despite some challenges in revenue and earnings growth, its solid dividend history and promising yield on cost suggest it remains an attractive option for income-focused investors. As the company navigates the complexities of the mining industry, its strategic initiatives and operational efficiency will be key to sustaining and potentially increasing its dividend payouts in the future. 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.
This article first appeared on GuruFocus.