EnLink Midstream LLC's Dividend Analysis
A comprehensive study of EnLink Midstream LLC's dividend performance and sustainability
EnLink Midstream LLC (NYSE:ENLC) recently announced a dividend of $0.13 per share, payable on 2023-11-10, with the ex-dividend date set for 2023-10-26. As investors anticipate this upcoming payment, the focus also intensifies on the company's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into EnLink Midstream LLC's dividend performance and evaluate its sustainability.
Company Overview: EnLink Midstream LLC
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
EnLink Midstream LLC is an integrated midstream company. It operates through various segments including Permian, North Texas, Oklahoma, Louisiana, and Corporate, with the Louisiana segment generating the majority of the revenue. The Louisiana segment comprises natural gas pipelines, natural gas processing plants, storage facilities, fractionation facilities, and NGL assets.
EnLink Midstream LLC's Dividend History
Since 2004, EnLink Midstream LLC has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
EnLink Midstream LLC's Dividend Yield and Growth
Currently, EnLink Midstream LLC has a 12-month trailing dividend yield of 3.95% and a 12-month forward dividend yield of 4.07%. 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%. Over a five-year horizon, this rate increased to -20.60% per year. Over the past decade, EnLink Midstream LLC's annual dividends per share growth rate was -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 1.25%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The sustainability of the dividend can be assessed by evaluating 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, ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, EnLink Midstream LLC's dividend payout ratio is 0.65.
EnLink Midstream LLC's profitability rank of 5 out of 10 as of 2023-06-30, suggests fair profitability. The company has reported net profit in 5 years out of the past 10 years.
Future Outlook: Growth Metrics
For 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 57.89% of global competitors.
Conclusion
In conclusion, while EnLink Midstream LLC's dividend payments and growth rate have experienced some fluctuations, the company's fair payout ratio, profitability, and growth metrics highlight its commitment to sustaining dividends. As investors continue to track these factors, the company's future dividend performance remains a point of interest.
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.
