EnLink Midstream LLC's Dividend Analysis
Assessing the Sustainability and Growth of EnLink Midstream LLC's Dividends
EnLink Midstream LLC (NYSE:ENLC) recently announced a dividend of $0.13 per share, payable on 2024-02-09, with the ex-dividend date set for 2024-01-26. 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 EnLink Midstream LLC's dividend performance and assess its sustainability.
What Does EnLink Midstream LLC Do?
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EnLink Midstream LLC is an integrated midstream company. The company's operating segment includes Permian; North Texas; Oklahoma; Louisiana and Corporate. The company generates maximum revenue from the Louisiana segment. The Louisiana segment includes natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets.
A Glimpse at EnLink Midstream LLC's Dividend History
EnLink Midstream LLC has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down EnLink Midstream LLC's Dividend Yield and Growth
As of today, EnLink Midstream LLC currently has a 12-month trailing dividend yield of 4.09% and a 12-month forward dividend yield of 4.34%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, EnLink Midstream LLC's annual dividend growth rate was -26.20%. Extended to a five-year horizon, this rate increased to -20.60% per year. And over the past decade, EnLink Midstream LLC's annual dividends per share growth rate stands at -2.30%.
Based on EnLink Midstream LLC's dividend yield and five-year growth rate, the 5-year yield on cost of EnLink Midstream LLC stock as of today is approximately 1.29%.
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, EnLink Midstream LLC's dividend payout ratio is 0.77, which may suggest that the company's dividend may not be sustainable.
EnLink Midstream LLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks EnLink Midstream LLC's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. EnLink Midstream LLC's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and EnLink Midstream LLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. EnLink Midstream LLC's revenue has increased by approximately 14.70% per year on average, a rate that outperforms approximately 57.19% of global competitors.
Final Thoughts on EnLink Midstream LLC's Dividend Profile
Considering EnLink Midstream LLC's consistent dividend history, current yield, and the company's financial health, investors have several factors to weigh. While the past dividend growth rates have been negative, the current yield and forward-looking statements suggest potential for improvement. The payout ratio and profitability rank highlight that EnLink Midstream LLC is balancing its dividend distributions with reinvestment in the company. With a solid revenue growth trajectory, EnLink Midstream LLC may have the necessary momentum to sustain and possibly increase its dividend offerings in the future.
For investors seeking to diversify their portfolio with dividend-paying stocks, EnLink Midstream LLC presents an interesting case study. As always, it is crucial to monitor the company's financials and market position to make an informed investment decision. 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.
