Exploring the Dividend Performance and Sustainability of Equatorial Energia SA
Equatorial Energia SA (EQUEY, Financial) recently announced a dividend of $0.01 per share, payable on 2024-06-14, with the ex-dividend date set for 2024-06-10. 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 Equatorial Energia SAs dividend performance and assess its sustainability.
What Does Equatorial Energia SA Do?
Equatorial Energia SA is primarily a holding company engaged in the ownership of other firms in the electric energy generation and distribution industries in Brazil. Collectively, Equatorial Energia's main subsidiaries are involved in electric energy distribution, telecommunications, data transmission, electric energy generation, and the operation and implementation of thermoelectric power plants in the country. The company's operating segments are Distribution, Transmission, Services, Trading, Central Administration, and Others. Revenue from the provision of construction services is significant for Equatorial Energia SA.
A Glimpse at Equatorial Energia SA's Dividend History
Equatorial Energia SA has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Equatorial Energia SA's Dividend Yield and Growth
As of today, Equatorial Energia SA currently has a 12-month trailing dividend yield of 1.49% and a 12-month forward dividend yield of 1.49%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Equatorial Energia SA's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate increased to 21.40% per year. And over the past decade, Equatorial Energia SA's annual dividends per share growth rate stands at an impressive 26.50%.
Based on Equatorial Energia SA's dividend yield and five-year growth rate, the 5-year yield on cost of Equatorial Energia SA stock as of today is approximately 3.93%.
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 2024-03-31, Equatorial Energia SA's dividend payout ratio is 0.13.
Equatorial Energia SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Equatorial Energia SA's profitability 10 out of 10 as of 2024-03-31, 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. Equatorial Energia SA's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Equatorial Energia SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Equatorial Energia SA's revenue has increased by approximately 24.50% per year on average, a rate that outperforms approximately 86.97% 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, Equatorial Energia SA's earnings increased by approximately 3.20% per year on average, a rate that outperforms approximately 40.97% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.90%, which outperforms approximately 73.16% of global competitors.
Next Steps
Equatorial Energia SA's consistent dividend payments, alongside its robust dividend growth rate and strong financial health, underscore its appeal to investors seeking stable income through dividends. With a solid payout ratio, excellent profitability, and promising growth metrics, Equatorial Energia SA appears well-positioned to maintain, if not enhance, its dividend distributions in the future. For those interested in exploring more high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
