Yahoo Finanzas Kinetik Holdings Inc's Dividend Analysis
Understanding the Dividend Dynamics of Kinetik Holdings Inc (NYSE:KNTK)
Kinetik Holdings Inc (NYSE:KNTK) recently announced a dividend of $0.75 per share, payable on 2024-05-09, with the ex-dividend date set for 2024-04-26. 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 look into Kinetik Holdings Inc's dividend performance and assess its sustainability.
What Does Kinetik Holdings Inc Do?
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Kinetik Holdings Inc is a midstream operator that provides gathering and processing services to gas and oil producers as well as pipeline transportation. It operates exclusively in Texas, serving the Permian Basin and connecting fields with market hubs and other large pipelines. In addition to directly operating pipelines, Kinetik Holdings Inc also holds ownership stakes in several pipelines that transport molecules to the Gulf Coast enabling it to obtain exposure to export markets and international demand.
A Glimpse at Kinetik Holdings Inc's Dividend History
Kinetik Holdings Inc 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 Kinetik Holdings Inc's Dividend Yield and Growth
As of today, Kinetik Holdings Inc currently has a 12-month trailing dividend yield of 7.65% and a 12-month forward dividend yield of 7.65%. This suggests an expectation of the same dividend payments over the next 12 months. Based on Kinetik Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Kinetik Holdings Inc stock as of today is approximately 7.65%.
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, Kinetik Holdings Inc's dividend payout ratio is 1.14, which may suggest that the company's dividend may not be sustainable. Kinetik Holdings Inc's profitability rank, as of 2023-12-31, is 4 out of 10, indicating the dividend may not be sustainable given the company has reported net profit in only 3 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. Kinetik Holdings Inc's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. However, Kinetik Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kinetik Holdings Inc's revenue has increased by approximately -7.50% per year on average, a rate that underperforms approximately 84.27% of global competitors.
Next Steps for Investors
Investors considering Kinetik Holdings Inc for its dividend prospects must weigh the high yield against the sustainability concerns raised by the payout ratio and profitability rank. While the revenue per share shows potential, the overall growth rank and underperformance in revenue growth compared to peers may raise red flags. It is crucial for investors to continue monitoring these metrics and consider the company's future strategy and market position. 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.
