Dorchester Minerals LP's Dividend Analysis
Insight into Dorchester Minerals LP's Upcoming Dividend Payment and Performance
Dorchester Minerals LP (NASDAQ:DMLP) recently announced a dividend of $1.01 per share, payable on 2024-02-08, with the ex-dividend date set for 2024-01-26. 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 Dorchester Minerals LP's dividend performance and assess its sustainability.
What Does Dorchester Minerals LP Do?
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Dorchester Minerals LP operates as the owner of producing and non-producing crude oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests. The company generates revenues from royalties, net profits interests, lease bonus, and others. It has leasehold interests in approximately 592 counties and parishes in around 28 states.
A Glimpse at Dorchester Minerals LP's Dividend History
Dorchester Minerals LP has maintained a consistent dividend payment record since 2003, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Dorchester Minerals LP's Dividend Yield and Growth
As of today, Dorchester Minerals LP currently boasts a 12-month trailing dividend yield of 10.23% and a 12-month forward dividend yield of 10.59%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Dorchester Minerals LP's annual dividend growth rate was 20.20%, which decreased to 14.70% per year over a five-year horizon. The company's annual dividends per share growth rate over the past decade stands at 3.50%.
Considering Dorchester Minerals LP's dividend yield and five-year growth rate, the 5-year yield on cost of Dorchester Minerals LP stock is approximately 20.31%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of Dorchester Minerals LP's dividends, one must consider the company's payout ratio. Dorchester Minerals LP's dividend payout ratio is 1.39 as of 2023-09-30, which may raise concerns about the sustainability of the company's dividends. However, Dorchester Minerals LP's profitability rank is 9 out of 10, indicating strong profitability prospects. The company has consistently reported positive net income each year for the past decade, bolstering its financial strength.