Revealed on June thirtieth, 2025 by Bob Ciura
Palantir Applied sciences (PLTR) is likely one of the market’s premier development shares. In simply the previous three years, Palantir inventory has produced returns of greater than 1,200%.
As the corporate’s income development has exploded and it has grow to be worthwhile, it’s pure for buyers to surprise if a dividend fee is likely to be on the horizon.
Whether or not an organization pays a dividend relies on many components. Hundreds of publicly-traded corporations pay dividends to shareholders, and a few have maintained lengthy histories of elevating their dividends yearly.
For instance, the Dividend Aristocrats are a choose group of 69 shares within the S&P 500 which have raised their dividends for 25+ years in a row.
You possibly can obtain an Excel spreadsheet of all Dividend Aristocrats (with metrics that matter, comparable to price-to-earnings ratios and dividend yields) by clicking the hyperlink beneath:
Disclaimer: Certain Dividend is just not affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official information from S&P International. Seek the advice of S&P International for official data.
However, different corporations don’t pay a dividend proper now and may not for a really very long time (or ever).
Traders within the firm might need to know if Palantir will ever pay a dividend to shareholders. This text will try to reply that query.
Enterprise Overview
Palantir had its preliminary public providing on September 30, 2020. The inventory opened up at $10 earlier than ending the day at $9.50. Nevertheless, the inventory has carried out fairly effectively previously 5 years, and now trades above $130 per share.
Presently, Palantir has a market capitalization above $300 billion, making it a mega-cap inventory.
Palantir was based in 2003, partly by well-known enterprise capitalist Peter Thiel. Thiel has been the brains, cash or each behind among the expertise sectors most profitable endeavors, together with Meta Manufacturers (META) and PayPal (PYPL).
Palantir is likely one of the main suppliers of software program platforms for the intelligence neighborhood. The corporate has 4 major platforms.
The Palantir Gotham platform can establish patterns hidden in datasets, which vary from indicators intelligence sources to experiences with confidential informants. Gotham is utilized by counter-terrorism analysts inside the U.S. Intelligence Group and U.S. Division of Protection.
Palantir Foundry creates a central working system for an organization’s information which permits customers to combine and analyze information wanted in a single centrally positioned place.
AIP permits prospects to automate just about all areas of their companies. Its Workflow Builder can assemble AI apps, actions, and brokers.
Lastly, Apollo homes software program deployment instruments. Options embrace SaaS, safety, compliance, and extra.
Progress Prospects
The corporate’s platforms can be utilized to deal with all kinds of industries, starting from protection to well being care to meals to vitality. This doesn’t restrict Palantir capacity to draw prospects to just some areas of the economic system.
With a deep pool of potential prospects, Palantir is not any area of interest enterprise.
The necessity for companies and organizations to have the ability to safely safe its information in a central location can also be a necessity and Palantir is ready to scale their platform to satisfy their wants.
Palantir has translated these development prospects into outcomes.
On Could fifth, the corporate reported first-quarter monetary outcomes. For the quarter, income of $883.85 million beat analyst expectations by $21.72 million. Adjusted earnings-per-share of $0.13 was in-line with estimates.
U.S. income elevated 55% year-over-year, together with 71% year-over-year development in U.S. industrial income.
Supply: Investor Presentation
The corporate has additionally been busy successful new enterprise since going public. Palantir closed on 139 offers within the first quarter value at the very least $1 million, 51 of which have been value at the very least $5 million.
Palantir can also be starting to seek out extra of a global presence. The corporate can proceed to develop its enterprise by increasing its space of operations.
Aggressive Benefits
Palantir has a number of benefits that units it aside from the competitors. First, Palantir’s subtle platform may also help corporations optimize their enterprise and discover methods to take away prices from the system. This may also help enhance working efficiency whereas lowering bills.
The corporate’s merchandise are additionally in excessive demand amongst navy prospects. Whereas considerably controversial amongst sure buyers, the corporate’s platforms have been confirmed to work in these areas which makes them a well-liked selection amongst the intelligence and protection communities.
As soon as belief has been gained, there might be switching prices related to these companies selecting one other vendor.
Palantir additionally has the good thing about rising prospects whereas additionally lowering in reliance on just some prospects.
Supply: Investor Presentation
Palantir generated GAAP internet revenue of $214 million together with GAAP earnings-per-share of $0.08, which means the corporate has reached profitability.
The corporate additionally raised steerage, now anticipating 2025 income of $3.89 billion to $3.902 billion. Palantir additionally expects free money move of $1.6 billion to $1.8 billion.
In the meantime, the corporate has the benefit of serious money reserves. As of the tip of its most up-to-date quarter, Palantir had a complete of $5.43 billion of money and money equivalents, and marketable securities on its steadiness sheet.
Present property complete $6.28 billion, in contrast with present liabilities of $976.4 million, indicating very robust liquidity. Only a few younger public corporations have such an unlimited sum of liquid property obtainable, with out important long-term debt.
Such a robust steadiness sheet will increase the prospect that the corporate might pay a dividend in some unspecified time in the future.
Lastly, Palantir remains to be run by the identical management as when the corporate was based. Thiel stays chairman and his handpicked CEO Alex Karp has been in place since 2004.
Will Palantir Ever Pay A Dividend?
Palantir is a uncommon firm that has proven robust income and earnings development since its IPO, together with an abundance of money on its steadiness sheet.
Firms trying to pay a dividend should be worthwhile with robust steadiness sheets with the intention to distribute a dividend.
On the floor, Palantir meets these necessities, which means it might theoretically pay a dividend. Nevertheless, there are different issues for corporations nonetheless of their development stage, comparable to Palantir.
Primarily, development corporations have to reinvest money move again into their companies, to remain on the expansion monitor. Certainly, Palantir continues to speculate the overwhelming majority of its proceeds again into the enterprise.
Working bills rose 22% within the first quarter, year-over-year. This was because of the firm rising its gross sales and market, analysis and growth and normal and administrative budgets to a extra affordable stage for a rising and increasing firm.
With excessive bills comes a low stage of income, which impacts any doable dividend want Palantir might have. Despite the fact that the corporate was worthwhile in its first quarter, Palantir is barely anticipated to earn $0.37 per share this 12 months.
Earnings-per-share are anticipated to develop by 16% subsequent 12 months to $0.43. This leaves comparatively little room to pay a dividend.
For instance, ff the corporate needed to allocate half of subsequent 12 months’s earnings-per-share to a dividend, then shareholders would possibly obtain a quarterly dividend of roughly $0.05. This equates to a yield of simply 0.1% on the present worth, which possible wouldn’t have a lot enchantment for revenue buyers.
On the similar time, buyers aren’t flocking to Palantir due to its capacity to throw off revenue. The younger firm is already worthwhile and seeing an unbelievable development charge. Any use of capital to pay a paltry dividend could be capital that couldn’t be spent elsewhere.
Palantir is a lot better off preserving capital to reinvest in its enterprise. The money on the steadiness sheet can at all times be used to make an acquisition or assist develop the enterprise in another manner.
Due to this fact, we consider it might be at the very least 5 to 10 years earlier than Palantir is able the place initiating a dividend is sensible.
Last Ideas
After a sluggish begin, there isn’t any doubting Palantir has been a superb funding following its IPO. The inventory has rocketed greater in simply the previous few years, producing a lifetime of returns in a comparatively quick time.
The corporate produced GAAP income in its first quarter and confirmed that income development stays very excessive. Palantir additionally has a number of development in entrance of it and has a number of aggressive benefits that ought to propel it greater.
Traders searching for a development inventory, and don’t thoughts the controversies relating to the corporate’s platforms, might do effectively proudly owning shares of Palantir. What they possible gained’t see is a dividend anytime quickly.
For shareholders of Palantir, they’re most likely extra excited concerning the complete return potentialities than a small dividend.
Extra Studying
See the articles beneath for an evaluation of whether or not different shares that presently don’t pay dividends will someday pay a dividend:
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