Central Puerto SA's Dividend Analysis
Assessing the Sustainability and Growth of Central Puerto SA's Dividend Payments
Central Puerto SA (NYSE:CEPU) recently announced a dividend of $0.07 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-01-12. 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 Central Puerto SA's dividend performance and assess its sustainability.
What Does Central Puerto SA Do?
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Central Puerto SA is a private sector power generation company. It is mainly engaged in electric power generation and commercialization. The company is also involved in the natural gas distribution public sector service in the Cuyo and Centro regions in Argentina. The Group has three reporting segments: production of electric power from conventional sources, production of electric power from renewable sources, and natural gas transport and distribution. The company derives maximum revenue from the Electric Power Generation from conventional sources segment.
A Glimpse at Central Puerto SA's Dividend History
Central Puerto SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Central Puerto SA's Dividend Yield and Growth
As of today, Central Puerto SA currently has a 12-month trailing dividend yield of 9.55% and a 12-month forward dividend yield of 10.31%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Central Puerto SA's annual dividend growth rate was 59.50%. Based on Central Puerto SA's dividend yield and five-year growth rate, the 5-year yield on cost of Central Puerto SA stock as of today is approximately 9.55%.
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 2023-09-30, Central Puerto SA's dividend payout ratio is 0.00.
Central Puerto SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Central Puerto SA's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 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. Central Puerto SA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Central Puerto SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Central Puerto SA's revenue has increased by approximately 11.10% per year on average, a rate that outperforms approximately 62.68% 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, Central Puerto SA's earnings increased by approximately 10.90% per year on average, a rate that outperforms approximately 66.28% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 34.20%, which outperforms approximately 91.74% of global competitors.
Next Steps
In conclusion, Central Puerto SA's dividend payments, impressive dividend growth rate, and strong payout ratio reflect a commitment to returning value to shareholders. The company's robust profitability and positive growth metrics provide further reassurance about the sustainability of its dividends. Investors seeking to capitalize on high-dividend yield opportunities may find Central Puerto SA an attractive proposition, supported by its financial health and growth outlook. For those interested in discovering more high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for their investment research.
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.
This article first appeared on GuruFocus.
