Portland General Electric Co (POR) Dividend Analysis: A Deep Dive into Dividend Sustainability
Assessing the Dividend Performance and Future Prospects of Portland General Electric Co (NYSE:POR)
Portland General Electric Co (NYSE:POR) recently announced a dividend of $0.48 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-22. 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 deep dive into Portland General Electric Co's dividend performance and assess its sustainability.
Introducing Portland General Electric Co
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Portland General Electric is a regulated electric utility providing generation, transmission, and distribution services to 925,000 customers representing about half of all Oregon residents. The company owns (wholly or through joint ventures) a total of 3.3 gigawatts of gas, coal, wind, and hydro generation.
Portland General Electric Co's Dividend History
Portland General Electric Co has maintained a consistent dividend payment record since 2006. Dividends are currently distributed on a quarterly basis. The company has increased its dividend each year since 2006, earning it the status of a dividend achiever, an honor given to companies that have consistently increased their dividend for at least the past 17 years.
Portland General Electric Co's Dividend Yield and Growth
As of today, Portland General Electric Co has a 12-month trailing dividend yield of 4.24% and a 12-month forward dividend yield of 4.39%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Portland General Electric Co's annual dividend growth rate was 5.60%. Extended to a five-year horizon, this rate increased to 5.90% per year. Over the past decade, its annual dividends per share growth rate stands at 5.60%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio of Portland General Electric Co, as of 2023-06-30, is 0.76. This high ratio may suggest that the company's dividend may not be sustainable in the long run. However, the company's profitability rank of 7 out of 10, along with a decade-long history of positive net income, suggest good profitability prospects.
Growth Metrics: The Future Outlook
Portland General Electric Co's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate of 7.60% per year indicate a strong revenue model. However, the company's 3-year EPS growth rate of 2.80% per year and 5-year EBITDA growth rate of 3.40% underperform compared to global competitors.
Conclusion
While Portland General Electric Co has a commendable history of consistent and growing dividends, its high payout ratio and underperforming growth rates compared to global competitors raise concerns about the sustainability of future dividends. Investors should keep an eye on these factors while making future investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
