An in-depth analysis of Eni SpA's dividend history, yield, and growth rates, using data from GuruFocus
Eni SpA (E, Financial) recently announced a dividend of $0.53 per share, payable on 2023-10-06, with the ex-dividend date set for 2023-09-18. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Eni SpA's dividend performance and assess its sustainability.
What Does Eni SpA Do?
Eni is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, the company produced 0.8 million barrels of liquids and 4.5 billion cubic feet of natural gas per day. At end-2022, Eni held reserves of 6.6 billion barrels of oil equivalent, 48% of which are liquids. The Italian government owns a 30.1% stake in the company. Eni is placing its renewable and low-carbon business in a separate entity called Plentitude, which it will likely list publicly at some point.
A Glimpse at Eni SpA's Dividend History
Eni SpA has maintained a consistent dividend payment record since 1996. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Eni SpA's Dividend Yield and Growth
As of today, Eni SpA currently has a 12-month trailing dividend yield of 5.65% and a 12-month forward dividend yield of 5.94%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Eni SpA's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate decreased to -1.70% per year. And over the past decade, Eni SpA's annual dividends per share growth rate stands at -4.70%.
Based on Eni SpA's dividend yield and five-year growth rate, the 5-year yield on cost of Eni SpA stock as of today is approximately 5.19%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Eni SpA's dividend payout ratio is 0.33.
Eni SpA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eni SpA's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Eni SpA's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Eni SpA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Eni SpA's revenue has increased by approximately 25.00% per year on average, a rate that outperforms approximately 78.3% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Eni SpA's earnings increased by approximately 362.20% per year on average, a rate that outperforms approximately 99.13% of global competitors.
Next Steps
Based on Eni SpA's consistent dividend payments, positive growth rate, reasonable payout ratio, fair profitability, and impressive growth metrics, it appears that the company is well-positioned to sustain its dividends in the foreseeable future. However, as with any investment, it's crucial to conduct thorough research and consider the company's overall financial health before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
