Yahoo Finance EQT Corp's Dividend Analysis
Understanding EQT Corp's Upcoming Dividend and Its Sustainability
EQT Corp (NYSE:EQT) recently announced a dividend of $0.16 per share, payable on June 1, 2024, with the ex-dividend date set for May 7, 2024. 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 EQT Corp's dividend performance and assess its sustainability.
What Does EQT Corp Do?
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EQT Corp is an independent natural gas production company with operations focused in the cores of the Marcellus and Utica shales in the Appalachian Basin, located in the Eastern United States. The firm focuses on executing combo-development projects for developing multiwell pads to meet supply needs, with a focus on maximizing operational efficiency, technology, and sustainability. Its main customers include marketers, utilities, and industrial operators in the Appalachian Basin. The company has one reportable segment and its revenue stems from three types of gas reserves: natural gas, natural gas liquids, and crude oil. All of the firm's operating revenue is generated in the U.S., with most revenue flowing from the Marcellus Shale field and through the sale of natural gas.
A Glimpse at EQT Corp's Dividend History
EQT Corp has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down EQT Corp's Dividend Yield and Growth
As of today, EQT Corp currently has a 12-month trailing dividend yield of 1.53% and a 12-month forward dividend yield of 1.56%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, EQT Corp's annual dividend growth rate was 172.60%. Based on EQT Corp's dividend yield and five-year growth rate, the 5-year yield on cost of EQT Corp stock as of today is approximately 1.53%.
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 March 31, 2024, EQT Corp's dividend payout ratio is 0.93, which may suggest that the company's dividend may not be sustainable. EQT Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks EQT Corp's profitability 5 out of 10 as of March 31, 2024, suggesting fair profitability. The company has reported net profit in 5 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. EQT Corp's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and EQT Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. EQT Corp's revenue has increased by approximately 6.30% per year on average, a rate that underperforms approximately 69.06% of global competitors.
Conclusion: Assessing EQT Corp's Dividend Viability
Considering EQT Corp's consistent dividend payments, impressive dividend growth rate, and current payout ratio, investors should closely monitor the sustainability of these dividends in relation to the company's profitability and growth metrics. For those interested in exploring further, 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.
