Pioneer Natural Resources Co's Dividend Analysis
Understanding the Dividend Dynamics of Pioneer Natural Resources Co
Pioneer Natural Resources Co (NYSE:PXD) recently announced a dividend of $2.56 per share, payable on 2024-03-22, with the ex-dividend date set for 2024-03-01. 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 Pioneer Natural Resources Co's dividend performance and assess its sustainability.
What Does Pioneer Natural Resources Co Do?
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Headquartered in Irving, Texas, Pioneer Natural Resources is an independent oil and gas exploration and production company focusing on the Permian Basin in Texas. At year-end 2022, Pioneer's proven reserves were 2.4 billion barrels of oil equivalent with net production for the year of 650 mboe per day. Oil and natural gas liquids represented 79% of production.
A Glimpse at Pioneer Natural Resources Co's Dividend History
Pioneer Natural Resources Co has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Pioneer Natural Resources Co's Dividend Yield and Growth
As of today, Pioneer Natural Resources Co currently has a 12-month trailing dividend yield of 5.94% and a 12-month forward dividend yield of 4.62%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Pioneer Natural Resources Co's annual dividend growth rate was 85.10%. Extended to a five-year horizon, this rate increased to 123.10% per year. And over the past decade, Pioneer Natural Resources Co's annual dividends per share growth rate stands at an impressive 86.00%.
Based on Pioneer Natural Resources Co's dividend yield and five-year growth rate, the 5-year yield on cost of Pioneer Natural Resources Co stock as of today is approximately 328.31%.
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 2023-12-31, Pioneer Natural Resources Co's dividend payout ratio is 0.68.