Matador Resources Company (NYSE: NYSE:MTDR) announced that it will increase its dividend to $0.20 on December 1st, despite a current yield of 0.9%. The company's earnings have sufficiently covered the dividend payments in the past, suggesting that a significant portion of its earnings are being allocated towards expansion.
The firm is projecting an impressive earnings per share (EPS) growth of 31.1%, which could lead to a potential payout ratio of 6.4%, indicating a sustainable dividend policy. This substantial growth projection is in line with the robust five-year EPS growth rate of 37% per year that the company has experienced.
However, Matador's short dividend payment history and the rapid annual payment growth of 82% over the past three years introduce an element of uncertainty. Despite this, the company's strong projected EPS growth and past performance suggest a promising outlook for the energy firm.
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