Understanding the Dividend Performance of Cheniere Energy Inc
Cheniere Energy Inc (LNG, Financial) recently announced a dividend of $0.44 per share, payable on 2024-02-23, with the ex-dividend date set for 2024-02-05. 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 Cheniere Energy Inc's dividend performance and assess its sustainability.
What Does Cheniere Energy Inc Do?
Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.
A Glimpse at Cheniere Energy Inc's Dividend History
Cheniere Energy Inc has maintained a consistent dividend payment record since 2021, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cheniere Energy Inc's Dividend Yield and Growth
As of today, Cheniere Energy Inc currently has a 12-month trailing dividend yield of 1.00% and a 12-month forward dividend yield of 1.08%, suggesting an expectation of increased dividend payments over the next 12 months.
Cheniere Energy Inc's dividend yield of 1.00% is near a 10-year high and outperforms 76.69% of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Cheniere Energy Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cheniere Energy Inc stock as of today is approximately 1.00%.
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, Cheniere Energy Inc's dividend payout ratio is 0.03.
Cheniere Energy Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cheniere Energy Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 3 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. Cheniere Energy Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Cheniere Energy Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cheniere Energy Inc's revenue has increased by approximately 51.80% per year on average, a rate that outperforms approximately 93.31% 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, Cheniere Energy Inc's earnings increased by approximately 23.50% per year on average, a rate that outperforms approximately 53.41% of global competitors.
Next Steps
Considering Cheniere Energy Inc's consistent dividend payments, a robust dividend growth rate, a low payout ratio, fair profitability, and strong growth metrics, the company presents itself as a potentially attractive option for income-focused investors. The forward-looking indicators suggest that Cheniere Energy Inc may continue to reward shareholders with sustainable dividends. However, as with any investment, it's essential to consider the broader economic context and the company's long-term strategic position within its industry.
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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.
