Naturgy Energy Group SA's Dividend Analysis
Unveiling the Dividend Performance and Sustainability of Naturgy Energy Group SA
Naturgy Energy Group SA(GASNY) recently announced a dividend of $0.11 per share, payable on 2023-11-22, with the ex-dividend date set for 2023-11-03. 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 Naturgy Energy Group SA's dividend performance and assess its sustainability.
What Does Naturgy Energy Group SA Do?
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Naturgy stems from the acquisition of Union Fenosa in 2008. The company operates across the gas value chain, from procurement to distribution and marketing. It owns and operates the largest gas distribution network in Spain and is the leader in retail gas supply. The company also owns and operates gas and electricity distribution networks in Latin America. The company owns 16.20 GW of generation capacity including 3.30 GW of wind and solar.
A Glimpse at Naturgy Energy Group SA's Dividend History
Naturgy Energy Group SA has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Naturgy Energy Group SA's Dividend Yield and Growth
As of today, Naturgy Energy Group SA currently has a 12-month trailing dividend yield of 5.38% and a 12-month forward dividend yield of 7.27%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Naturgy Energy Group SA's annual dividend growth rate was -3.50%. Extended to a five-year horizon, this rate increased to 2.40% per year. And over the past decade, Naturgy Energy Group SA's annual dividends per share growth rate stands at 5.20%.
Based on Naturgy Energy Group SA's dividend yield and five-year growth rate, the 5-year yield on cost of Naturgy Energy Group SA stock as of today is approximately 6.06%.
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 2023-06-30, Naturgy Energy Group SA's dividend payout ratio is 0.54.
Naturgy Energy Group SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Naturgy Energy Group SA's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 8 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. Naturgy Energy Group SA's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Naturgy Energy Group SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Naturgy Energy Group SA's revenue has increased by approximately 18.50% per year on average, a rate that outperforms than approximately 83.13% 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, Naturgy Energy Group SA's earnings increased by approximately 9.30% per year on average, a rate that outperforms than approximately 58.73% of global competitors.
Next Steps
Given Naturgy Energy Group SA's consistent dividend payments, steady growth rate, and a reasonable payout ratio, it appears to be a promising candidate for dividend investors. Furthermore, its strong profitability and growth metrics indicate a robust business model that can sustain dividends in the long run. However, investors should always consider the overall financial health of the company and potential market risks before making an investment decision.
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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.
