Assessing the Dividend Performance and Sustainability of IESFY
Interconexion Electrica SA ESP (IESFY, Financial) recently announced a dividend of $5.49 per share, payable on 2024-01-02, with the ex-dividend date set for 2023-12-12. 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 look into Interconexion Electrica SA ESP's dividend performance and assess its sustainability.
What Does Interconexion Electrica SA ESP Do?
Interconexion Electrica SA ESP, also known as ISA, is a mixed public services company in which the Colombian state is a majority shareholder. Through its subsidiaries, ISA participates in a variety of infrastructure projects across South and Central America. The company segments its operations into Management of investments in linear infrastructure, Energy transmission services, Connection to the grid, and Construction services. ISA generates the majority of its revenue from its energy transmission division where it owns, operates, and maintains high-voltage power transmission systems in many of the largest countries in Latin America. ISA's road concessions business, in which the company constructs, operates, and maintains toll roads, also represents a significant revenue stream.
A Glimpse at Interconexion Electrica SA ESP's Dividend History
Interconexion Electrica SA ESP has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Interconexion Electrica SA ESP's Dividend Yield and Growth
As of today, Interconexion Electrica SA ESP currently has a 12-month trailing dividend yield of 6.71% and a 12-month forward dividend yield of 10.96%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Interconexion Electrica SA ESP's annual dividend growth rate was 10.70%. Extended to a five-year horizon, this rate increased to 35.00% per year. And over the past decade, Interconexion Electrica SA ESP's annual dividends per share growth rate stands at an impressive 20.00%.
Based on Interconexion Electrica SA ESP's dividend yield and five-year growth rate, the 5-year yield on cost of Interconexion Electrica SA ESP stock as of today is approximately 30.09%.
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, Interconexion Electrica SA ESP's dividend payout ratio is 0.60.
Interconexion Electrica SA ESP's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Interconexion Electrica SA ESP's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of the year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Interconexion Electrica SA ESP's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Interconexion Electrica SA ESP's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Interconexion Electrica SA ESP's revenue has increased by approximately 18.00% per year on average, a rate that outperforms approximately 81.24% 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, Interconexion Electrica SA ESP's earnings increased by approximately 10.90% per year on average, a rate that outperforms approximately 66.82% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.70%, which outperforms approximately 52.97% of global competitors.
Next Steps
In conclusion, Interconexion Electrica SA ESP's dividend payments, impressive dividend growth rate, reasonable payout ratio, strong profitability, and robust growth metrics paint a picture of a company committed to providing value to its shareholders through dividends. The company's financial health and strategic position in the infrastructure sector suggest a sustainable dividend policy, making it an attractive option for income-focused investors. As you consider adding IESFY to your portfolio, ask yourself: Does Interconexion Electrica SA ESP align with your investment strategy and goals for dividend income?
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
