Surge Energy (OTC:ZPTAF) Inc. has declared an upcoming dividend payment of CA$0.04 per share, as the company approaches its ex-dividend status next Tuesday. Shareholders on record by Wednesday will be eligible for the December payout, with the dividends set to be distributed on Thursday, December 15.
The forthcoming dividend is part of Surge Energy's consistent shareholder returns, which last year totaled CA$0.48 per share, yielding a robust 6.0%. The sustainability of these dividends appears strong, supported by a significant earnings growth rate of more than 37% annually over the past five years. This financial performance is complemented by the company's cautious payout strategies, utilizing only 30% of profits and 45% of free cash flow for dividends.
Despite these positive indicators and the potential for future increases in dividend payouts, historical trends reveal an average annual decrease of -18% in dividends per share over the past decade. This suggests some volatility in Surge Energy's dividend policy, potentially pointing to strategic reinvestment decisions or other internal factors affecting the company's approach to shareholder returns.
Investors interested in receiving this dividend must purchase stock before Tuesday, as transactions made post this date may not qualify due to standard settlement periods. The record date cutoff to be registered for the December dividend is Wednesday, ensuring that shareholders who meet this deadline will receive their payments in mid-December.
InvestingPro Insights
As Surge Energy Inc . (TSX:SGY) gears up for its dividend distribution, investors may find additional context through real-time data and insights from InvestingPro. The company's market capitalization stands at $588.89 million, reflecting its size and market value. With a price-to-earnings (P/E) ratio of 5.13, Surge Energy is trading at a valuation that suggests it could be undervalued compared to industry averages, especially considering its P/E ratio over the last twelve months is 5.23, only slightly higher. This is complemented by a price-to-book ratio of 0.91, indicating that the stock may be reasonably priced relative to its net asset value.
InvestingPro Tips highlight certain aspects of the company's financial health and stock performance. The stock's price movements have been quite volatile, which could be a consideration for investors looking for stable returns. Although Surge Energy has been profitable over the last twelve months, it's important to note that the company's short-term obligations exceed its liquid assets, which could present liquidity challenges.
For those seeking a deeper dive into Surge Energy's financials and strategic insights, InvestingPro offers additional tips. Subscribers can access these, and right now, the InvestingPro subscription is available at a special Black Friday sale with discounts of up to 55%. This could be an opportune time for investors to gain access to a broader range of expert insights, with several more tips available to inform their investment decisions.
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