Exploring the Dividend Performance and Sustainability of ENN Energy Holdings Ltd (XNGSY, Financial)
ENN Energy Holdings Ltd (XNGSY) recently announced a dividend of $1.18 per share, payable on 2024-08-12, with the ex-dividend date set for 2024-06-06. 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 ENN Energy Holdings Ltd's dividend performance and assess its sustainability.
What Does ENN Energy Holdings Ltd Do?
ENN Energy Holdings Ltd is primarily engaged in distributing and retailing natural gas. By year-end 2023, ENN owned 259 city gas projects in China, with annual gas sales volume of 33.6 billion cubic meters. Meanwhile, the aggregate number of connected piped gas residential households reached 29.8 million, with an average gas penetration rate of 65.2%. ENN Energy also has ventured into integrated energy business with 296 projects in operation.
A Glimpse at ENN Energy Holdings Ltd's Dividend History
ENN Energy Holdings Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ENN Energy Holdings Ltd's Dividend Yield and Growth
As of today, ENN Energy Holdings Ltd currently has a 12-month trailing dividend yield of 3.91% and a 12-month forward dividend yield of 3.97%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, ENN Energy Holdings Ltd's annual dividend growth rate was 16.70%. Extended to a five-year horizon, this rate increased to 26.30% per year. And over the past decade, ENN Energy Holdings Ltd's annual dividends per share growth rate stands at an impressive 22.40%.
Based on ENN Energy Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of ENN Energy Holdings Ltd stock as of today is approximately 12.57%.
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 2023-12-31, ENN Energy Holdings Ltd's dividend payout ratio is 0.47. ENN Energy Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ENN Energy Holdings Ltd's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. ENN Energy Holdings Ltd'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 ENN Energy Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ENN Energy Holdings Ltd's revenue has increased by approximately 13.50% per year on average, a rate that outperforms approximately 67% 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, ENN Energy Holdings Ltd's earnings increased by approximately -3.60% per year on average, a rate that outperforms approximately 28.07% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 11.10%, which outperforms approximately 70.25% of global competitors.
Conclusion
ENN Energy Holdings Ltd's robust dividend payments, impressive growth rates, sustainable payout ratio, and strong profitability metrics underscore its potential as a valuable addition to dividend-focused portfolios. With a forward-looking approach and strategic growth initiatives, ENN Energy Holdings Ltd appears well-positioned to maintain its dividend attractiveness in the energy sector. Investors seeking to enhance their income streams may find ENN Energy Holdings Ltd an intriguing option. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
