Portland General Electric Co's Dividend Analysis
Insights into Portland General Electric Co's Upcoming Dividend Payment
Portland General Electric Co (NYSE:POR) recently announced a dividend of $0.48 per share, payable on 2024-01-15, with the ex-dividend date set for 2023-12-22. 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 look into Portland General Electric Co's dividend performance and assess its sustainability.
What Does Portland General Electric Co Do?
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Portland General Electric is a regulated electric utility providing generation, transmission, and distribution services to 926,000 customers across a service territory that includes about half of all Oregon residents and two thirds of the state's business activity. The company owns (wholly or through joint ventures) 3.3 gigawatts of gas, coal, wind, and hydro generation.
A Glimpse at 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.
Portland General Electric Co has increased its dividend each year since 2006. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 17 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Portland General Electric Co's Dividend Yield and Growth
As of today, Portland General Electric Co currently has a 12-month trailing dividend yield of 4.26% and a 12-month forward dividend yield of 4.36%. 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. And over the past decade, Portland General Electric Co's annual dividends per share growth rate stands at 5.60%.
Based on Portland General Electric Co's dividend yield and five-year growth rate, the 5-year yield on cost of Portland General Electric Co stock as of today is approximately 5.67%.
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, Portland General Electric Co's dividend payout ratio is 0.84, which may suggest that the company's dividend may not be sustainable.
Portland General Electric Co's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Portland General Electric Co's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of the year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Portland General Electric Co'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 Portland General Electric Co's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Portland General Electric Co's revenue has increased by approximately 7.60% per year on average, a rate that underperforms approximately 51.76% 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, Portland General Electric Co's earnings increased by approximately 2.50% per year on average, a rate that underperforms approximately 54.59% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.90%, which underperforms approximately 55.56% of global competitors.
Concluding Thoughts on Portland General Electric Co's Dividend Prospects
In conclusion, while Portland General Electric Co has a history of consistent dividend growth and a reasonable yield, concerns about the sustainability of its dividend arise from a high payout ratio. However, the company's solid profitability rank and positive net income history provide some reassurance. Growth metrics present a mixed picture, with revenue growth underperforming relative to global competitors, suggesting that investors should keep an eye on these factors when considering the long-term viability of Portland General Electric Co's dividends. Now, as Portland General Electric Co prepares to distribute its next dividend, investors must weigh these factors to make informed decisions on their investment strategies.
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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.
