HF Sinclair (NYSE:DINO), a player in the energy sector, has declared its upcoming dividend payout, drawing attention from dividend-focused investors. Those holding shares of HF Sinclair as of November 15 will be eligible for the dividend payment scheduled for December 5. The company is set to distribute $0.45 per share, which reflects a trailing yield of 3.4% based on the current share price of $52.5.
The dividend distribution appears to be well-supported by the company's financials. HF Sinclair maintains a conservative payout ratio, allocating just 15% of its post-tax income and 13% of its free cash flow towards dividends. This prudent approach suggests that the dividends are sustainable in the long term.
Despite experiencing robust annual earnings growth of 22%, HF Sinclair's dividends have seen an average annual decrease of 7.0% over the past decade. This trend could be interpreted as a strategic move by the company, potentially reallocating funds typically used for dividends toward further business investments and growth opportunities.
Given the combination of HF Sinclair's significant earnings growth, conservative payout ratio, and historical approach to dividends, the company presents an interesting opportunity for investors with a focus on dividend income. The upcoming ex-dividend date is a critical deadline for investors aiming to benefit from the next round of dividend payments from HF Sinclair.
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