An In-Depth Look at Neoenergia SA's Upcoming Dividend and Historical Performance
Neoenergia SA (NRGIY, Financial) recently announced a dividend of $0.19 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-04-22. 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 Neoenergia SA's dividend performance and assess its sustainability.
What Does Neoenergia SA Do?
Neoenergia SA engages in the generation, transmission, distribution, and trading of electric energy in Brazil. The company operates a diverse portfolio of electricity generation plants, including hydroelectric, thermoelectric, wind, and cogeneration plants. Neoenergia SA also provides consulting and energy management services, positioning itself as a key player in Brazil's energy sector.
A Glimpse at Neoenergia SA's Dividend History
Neoenergia SA has maintained a consistent dividend payment record since 2024, distributing dividends on a yearly basis. The company has demonstrated a commitment to increasing its dividend, earning the prestigious title of a dividend king. This distinction is reserved for companies that have increased their dividend each year for at least the past 2024 years.
Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down Neoenergia SA's Dividend Yield and Growth
As of today, Neoenergia SA currently has a 12-month trailing dividend yield of 2.24% and a 12-month forward dividend yield of 5.17%. This indicates an expectation of increased dividend payments over the next 12 months.
Over the past three years, Neoenergia SA's annual dividend growth rate was 43.30%. When extended to a five-year horizon, this rate decreased to 27.70% per year. Over the past decade, the annual dividends per share growth rate of Neoenergia SA stands at an impressive 27.30%.
Based on Neoenergia SA's dividend yield and five-year growth rate, the 5-year yield on cost for Neoenergia SA stock as of today is approximately 7.61%.
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. As of 2023-12-31, Neoenergia SA's dividend payout ratio is 0.08, indicating a conservative approach that ensures funds are available for future growth and unexpected downturns.
Neoenergia SA's profitability rank is 8 out of 10 as of 2023-12-31, signaling good profitability prospects. The company's consistent positive net income over the past decade further solidifies its financial health.
Growth Metrics: The Future Outlook
Neoenergia SA's growth rank of 8 out of 10 indicates a positive growth trajectory compared to its competitors.
With a revenue per share and a 3-year revenue growth rate of 14.60% per year, Neoenergia SA outperforms approximately 70.65% of global competitors, demonstrating a strong revenue model.
The company's 3-year EPS growth rate of 82.30% per year outperforms approximately 96.31% of global competitors, highlighting its ability to grow earnings, which is essential for sustaining dividends.
Additionally, Neoenergia SA's 5-year EBITDA growth rate of 53.70% outperforms approximately 96.66% of global competitors.
Concluding Thoughts on Neoenergia SA's Dividend Prospects
In conclusion, Neoenergia SA's upcoming dividend, consistent growth in dividend payments, conservative payout ratio, strong profitability, and robust growth metrics paint a promising picture for value investors. These factors suggest that the company is well-positioned to maintain and potentially increase its dividend payments in the future, making it an attractive option for those seeking steady income from their investments. As investors consider adding Neoenergia SA to their portfolios, they may find it beneficial to utilize tools like the High Dividend Yield Screener available to GuruFocus Premium users for further research and decision-making.
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.
