APA Corporation: A Quarterly Dividend of $0.25 on the Horizon
Sunday, Dec 15, 2024 9:00 am ET
APA Corporation (NASDAQ:APA), an independent energy company, has announced a quarterly dividend of $0.25 per share, payable on February 21, 2025, to stockholders of record on January 22, 2025. This dividend represents a 4.4% yield, which is in line with the company's historical payouts. APA's dividend growth rate over the past five years has been 62% per year, outpacing the broader market's average dividend growth rate of approximately 5% per year. However, compared to its peers in the Energy sector, APA's dividend growth rate is relatively low, with the average dividend growth rate for Energy companies being around 8% per year. Despite this, APA's dividend payout is well-covered by earnings, with a payout ratio of approximately 28%, indicating that the company has room to continue growing its dividend in the future.
APA Corporation has a consistent history of paying dividends, with a stable dividend policy over the past decade. The company has maintained an annual dividend of $1.00 per share, with a yield of approximately 4.37%. The dividend is paid quarterly, with the last ex-dividend date being October 22, 2024. This consistency and stability in dividend payments indicate that APA is committed to returning value to shareholders through regular distributions.
APA's dividend payout ratio has been relatively consistent over time, hovering around 15%. This suggests that APA is maintaining a balance between reinvesting in the company and rewarding shareholders with dividends. The stable payout ratio also indicates that APA's dividend is well-covered by earnings, demonstrating the company's financial health and sustainability.
Over the past five years, APA's earnings per share have grown at a rate of 62% per year, indicating a strong correlation between the company's earnings growth and its dividend growth. This relationship suggests that APA's dividend is well-supported by its earnings, and investors can expect a consistent and growing dividend payout in the future.

In conclusion, APA Corporation's quarterly dividend of $0.25 per share is a testament to the company's commitment to returning value to shareholders. With a stable dividend policy, a well-covered payout ratio, and strong earnings growth, APA's dividend is a solid investment for income-oriented investors. As the company continues to grow its earnings and maintain its dividend payout, investors can expect a consistent and growing dividend stream in the future.
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