Cheniere Energy Partners LP's Dividend Analysis
Assessing the Sustainability and Growth of CQP's Dividends
Cheniere Energy Partners LP (CQP) recently announced a dividend of $1.04 per share, payable on 2024-02-14, with the ex-dividend date set for 2024-02-06. 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 Cheniere Energy Partners LP's dividend performance and assess its sustainability.
What Does Cheniere Energy Partners LP Do?
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Cheniere Energy Partners is the direct owner of the Sabine Pass LNG terminals as well as regasification facilities. It also owns the Creole Trail Pipeline, which connects the terminal to third-party gas suppliers. Cheniere Partners shares in the marketing fees generated by Cheniere Marketing from Sabine Pass marketed gas volumes.
A Glimpse at Cheniere Energy Partners LP's Dividend History
Cheniere Energy Partners LP has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. Cheniere Energy Partners LP has increased its dividend each year since 2007, earning it the title of a dividend achiever, a distinction awarded to companies that have consistently raised their dividends for at least the past 17 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cheniere Energy Partners LP's Dividend Yield and Growth
As of today, Cheniere Energy Partners LP currently has a 12-month trailing dividend yield of 8.02% and a 12-month forward dividend yield of 7.95%. This suggests an expectation of decrease in dividend payments over the next 12 months.
Over the past three years, Cheniere Energy Partners LP's annual dividend growth rate was 17.00%. Extended to a five-year horizon, this rate decreased to 14.50% per year. And over the past decade, Cheniere Energy Partners LP's annual dividends per share growth rate stands at 7.70%. Based on Cheniere Energy Partners LP's dividend yield and five-year growth rate, the 5-year yield on cost of Cheniere Energy Partners LP stock as of today is approximately 15.78%.
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, Cheniere Energy Partners LP's dividend payout ratio is 0.41.
Cheniere Energy Partners LP's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cheniere Energy Partners LP's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 6 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. Cheniere Energy Partners LP'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 Cheniere Energy Partners LP's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cheniere Energy Partners LP's revenue has increased by approximately 36.00% per year on average, a rate that outperforms approximately 86.38% 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, Cheniere Energy Partners LP's earnings increased by approximately 13.40% per year on average, a rate that outperforms approximately 41.55% of global competitors.
Next Steps
Considering Cheniere Energy Partners LP's consistent dividend payments, robust growth rate, manageable payout ratio, strong profitability, and promising growth metrics, the company's dividend profile appears sustainable. Investors looking for stable and growing income streams may find Cheniere Energy Partners LP to be an attractive option. However, as with any investment, it is essential to conduct thorough research and consider the overall market conditions. For investors seeking similar opportunities, 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.
This article first appeared on GuruFocus.
