Is APA A Good Dividend Stock? No, But Consider Total Shareholder Capital Return

The Value Pendulum
Investing Group Leader

Summary

  • APA's dividend yield is not sufficiently good; its consensus forward FY 2022 dividend yield pales in comparison with that for the S&P 500.
  • But APA's dividends are safe, as the company's dividend payout ratio is very low and it can reallocate capital from buybacks to dividends if needed.
  • APA is not a good dividend stock now, as it is currently prioritizing share repurchases over dividends.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Oil pumps and rig at sunset

baona/E+ via Getty Images

Elevator Pitch

APA Corporation (NASDAQ:APA) is not a good dividend stock, taking into account its very modest consensus forward fiscal 2022 dividend yield of just over 1%. However, APA's forward fiscal 2022 shareholder capital return ratio (dividends and buybacks divided by free cash

Asia Value & Moat Stocks is a research service for value investors seeking Asia-listed stocks with a huge gap between price and intrinsic value, leaning towards deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high-quality businesses, hidden champions and wide moat compounders). Sign up here to get started today!

This article was written by

The Value Pendulum
12.78K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About APA Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on APA

Related Stocks

SymbolLast Price% Chg
APA
--
Compare

Trending Analysis

Trending News