Consistency is Key: Liberty Energy's Dividend Policy Under Scrutiny
Liberty Energy Inc. (NYSE:LBRT) has reaffirmed its dividend payment of $0.08 per share, which is a relatively low yield compared to other companies in the industry. The company's earnings per share are forecasted to rise by 16.7% over the next year, and with a payout ratio estimated at 15%, it seems that the dividend could be sustainable in the long term. However, given that the dividend has been cut at least once in the past, caution should be exercised regarding the consistency of the dividend over an economic cycle.
- The fact that Liberty Energy's dividend has grown at a compound annual growth rate (CAGR) of approximately 6.9% since 2018 suggests that the company may have successfully addressed previous concerns about its dividend sustainability.
- What is the potential impact on investors if Liberty Energy were to experience any unforeseen economic downturns or changes in the energy industry, which could affect the company's ability to maintain its dividend payments?