Delving into CTPZY's Upcoming Dividend Payout and Financial Health
Cia de Transmissao de Energia Eletrica Paulista (CTPZY, Financial) recently announced a dividend of $0.45 per share, payable on a date yet to be announced, with the ex-dividend date set for 2023-12-21. 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 Cia de Transmissao de Energia Eletrica Paulista's dividend performance and assess its sustainability.
What Does Cia de Transmissao de Energia Eletrica Paulista Do?
Cia de Transmissao de Energia Eletrica Paulista, or CTEEP, is a Brazilian private-public utility concession company involved in the transmission of electric power. Through its subsidiaries, CTEEP plans, constructs, operates, and maintains electric transmission systems and transmission-related infrastructure projects throughout the country of Brazil. The company segments its operations between Infrastructure, Operation & Maintenance, and Concession Assets Remuneration business units. The vast majority of CTEEP's revenue can be derived from its Operation & Maintenance division, which controls and cares for its nationwide electricity transmission system. The company transmits a significant amount of all the power produced in Brazil and over half of the energy consumed in Southeast Brazil.
A Glimpse at Cia de Transmissao de Energia Eletrica Paulista's Dividend History
Cia de Transmissao de Energia Eletrica Paulista has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cia de Transmissao de Energia Eletrica Paulista's Dividend Yield and Growth
As of today, Cia de Transmissao de Energia Eletrica Paulista currently has a 12-month trailing dividend yield of 3.83% and a 12-month forward dividend yield of 7.98%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Cia de Transmissao de Energia Eletrica Paulista's annual dividend growth rate was -2.80%. Extended to a five-year horizon, this rate increased to 6.60% per year. And over the past decade, Cia de Transmissao de Energia Eletrica Paulista's annual dividends per share growth rate stands at an impressive 22.00%.
Based on Cia de Transmissao de Energia Eletrica Paulista's dividend yield and five-year growth rate, the 5-year yield on cost of Cia de Transmissao de Energia Eletrica Paulista stock as of today is approximately 5.27%.
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, Cia de Transmissao de Energia Eletrica Paulista's dividend payout ratio is 0.32.
Cia de Transmissao de Energia Eletrica Paulista's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cia de Transmissao de Energia Eletrica Paulista's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of 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. Cia de Transmissao de Energia Eletrica Paulista's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Cia de Transmissao de Energia Eletrica Paulista's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cia de Transmissao de Energia Eletrica Paulista's revenue has increased by approximately 9.70% per year on average, a rate that underperforms approximately 53.83% 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, Cia de Transmissao de Energia Eletrica Paulista's earnings increased by approximately 0.10% per year on average, a rate that underperforms approximately 61.59% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.80%, which underperforms approximately 39.8% of global competitors.
Next Steps
In conclusion, Cia de Transmissao de Energia Eletrica Paulista demonstrates a strong dividend history with a respectable payout ratio, ensuring that dividends are well-covered by earnings. While the company's recent dividend growth rates and profitability rank reflect a positive outlook, its growth metrics compared to global competitors suggest potential areas for improvement. Investors should consider these factors in their overall analysis of Cia de Transmissao de Energia Eletrica Paulista's investment prospects. For those seeking dividend-paying stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover opportunities that align with their investment strategies.
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.
