Dorian LPG Ltd's Dividend Analysis
Insights into Dorian LPG Ltd's Dividend Sustainability and Growth
Dorian LPG Ltd (NYSE:LPG) recently announced a dividend of $1 per share, payable on 2024-02-27, with the ex-dividend date set for 2024-02-02. 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 Dorian LPG Ltd's dividend performance and assess its sustainability.
What Does Dorian LPG Ltd Do?
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Dorian LPG Ltd is an international liquefied petroleum gas shipping company focused on owning and operating gas carriers, or VLGCs. The company currently owns and operates around 22 modern VLGCs, including nineteen new fuel-efficient 84,000 cbm ECO-design VLGCs. Dorian LPG has offices in Connecticut, USA, London, United Kingdom, and Athens, Greece.
A Glimpse at Dorian LPG Ltd's Dividend History
Dorian LPG Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Dorian LPG Ltd's Dividend Yield and Growth
As of today, Dorian LPG Ltd currently has a 12-month trailing dividend yield of 10.46% and a 12-month forward dividend yield of 10.46%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Dorian LPG Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Dorian LPG Ltd stock as of today is approximately 10.46%.
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 2023-09-30, Dorian LPG Ltd's dividend payout ratio is 0.64.
Dorian LPG Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dorian LPG Ltd's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Dorian LPG Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.