Vistra Corp's Dividend Analysis
Insight into Vistra Corp's Upcoming Dividend and Financial Health
Vistra Corp (NYSE:VST) recently announced a dividend of $0.22 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-19. 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 Vistra Corp's dividend performance and assess its sustainability.
What Does Vistra Corp Do?
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Vistra Energy is one of the largest power producers and retail energy providers in the U.S. Excluding the Energy Harbor acquisition, Vistra Corp (NYSE:VST) owns and operates 38 gigawatts of nuclear, coal, natural gas, and solar power generation. Its retail electricity segment serves 4.3 million customers in 20 states. Vistra Corp's retail business serves almost one third of all Texas electricity consumers. Vistra emerged from the Energy Future Holdings bankruptcy as a stand-alone entity in 2016. It acquired Dynegy in 2018 and plans to close the Energy Harbor acquisition in 2023.
A Glimpse at Vistra Corp's Dividend History
Vistra Corp (NYSE:VST) has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Vistra Corp's Dividend Yield and Growth
As of today, Vistra Corp currently has a 12-month trailing dividend yield of 1.33% and a 12-month forward dividend yield of 1.40%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Vistra Corp's annual dividend growth rate was 15.00%. Based on Vistra Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Vistra Corp stock as of today is approximately 1.33%.
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 2023-12-31, Vistra Corp's dividend payout ratio is 0.23.
Vistra Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Vistra Corp's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Vistra Corp'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 Vistra Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Vistra Corp's revenue has increased by approximately 19.10% per year on average, a rate that outperforms approximately 64.85% 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, Vistra Corp's earnings increased by approximately 20.00% per year on average, a rate that outperforms approximately 62.26% of global competitors.
Concluding Thoughts on Vistra Corp's Dividend Outlook
Considering Vistra Corp's consistent dividend history, promising yield, and growth rate, combined with a prudent payout ratio and fair profitability, the company's dividend appears sustainable in the near term. Vistra Corp's strong revenue and earnings growth further reinforce the potential for continued dividend payments and potential increases. As value investors seek to bolster their portfolios with reliable dividend-paying stocks, Vistra Corp presents an intriguing option worth closer examination. Will Vistra Corp continue to deliver shareholder value through dividends amidst the dynamic energy sector landscape? GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find more opportunities like Vistra Corp.
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.
