HighPeak Energy (NASDAQ:HPK) Will Pay A Dividend Of $0.04

HighPeak Energy, Inc. (NASDAQ:HPK) will pay a dividend of $0.04 on the 23rd of December. The dividend yield is 2.7% based on this payment, which is a little bit low compared to the other companies in the industry.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. HighPeak Energy’s stock price has reduced by 31% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield.

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If it is predictable over a long period, even low dividend yields can be attractive. The last payment was quite easily covered by earnings, but it made up 1,023% of cash flows. While the company may be more focused on returning cash to shareholders than growing the business at this time, we think that a cash payout ratio this high might expose the dividend to being cut if the business ran into some challenges.

Looking forward, earnings per share is forecast to fall by 48.9% over the next year. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 102%, which is definitely a bit high to be sustainable going forward.

NasdaqGM:HPK Historic Dividend November 9th 2025

See our latest analysis for HighPeak Energy

The dividend hasn’t seen any major cuts in the past, but the company has only been paying a dividend for 4 years, which isn’t that long in the grand scheme of things. The annual payment during the last 4 years was $0.10 in 2021, and the most recent fiscal year payment was $0.16. This means that it has been growing its distributions at 12% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can’t know for sure if payment can continue to grow over the long term, so caution may be warranted.

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that HighPeak Energy has grown earnings per share at 19% per year over the past five years. While on an earnings basis, this company looks appealing as an income stock, the cash payout ratio still makes us cautious.

Overall, it’s nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. Overall, we don’t think this company has the makings of a good income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we’ve identified 5 warning signs for HighPeak Energy (2 are potentially serious!) that you should be aware of before investing. Is HighPeak Energy not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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