Exploring the Sustainability and Growth of Dividends
Cheniere Energy Partners LP (CQP, Financial) recently announced a dividend of $0.81 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-05-08. 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 Partners LP's dividend performance and assess its sustainability.
What Does Cheniere Energy Partners LP Do?
Cheniere Energy Partners LP is the direct owner of the Sabine Pass LNG terminals as well as regasification facilities. It also owns the Creole Trail Pipeline, which connects the terminal to third-party gas suppliers. Cheniere Partners shares in the marketing fees generated by Cheniere Marketing from Sabine Pass marketed gas volumes.
A Glimpse at Cheniere Energy Partners LP's Dividend History
Cheniere Energy Partners LP has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a quarterly basis. The stock is 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 Cheniere Energy Partners LP's Dividend Yield and Growth
As of today, Cheniere Energy Partners LP currently has a 12-month trailing dividend yield of 8.12% and a 12-month forward dividend yield of 7.67%, suggesting an expectation of decreased dividend payments over the next 12 months. Over the past three years, Cheniere Energy Partners LP's annual dividend growth rate was 17.50%, which decreased to 14.20% per year over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at 9.80%. Based on Cheniere Energy Partners LP's dividend yield and five-year growth rate, the 5-year yield on cost of Cheniere Energy Partners LP stock as of today is approximately 15.77%.
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 2024-03-31, Cheniere Energy Partners LP's dividend payout ratio is 0.89, which may suggest challenges in sustainability. However, Cheniere Energy Partners LP's profitability rank of 8 out of 10 suggests good profitability prospects, having reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Cheniere Energy Partners LP's growth rank of 8 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with a 3-year revenue growth rate of approximately 16.20% per year, showcases a strong revenue model, albeit slightly underperforming about 51.1% of global competitors. Additionally, the 3-year EPS growth rate of approximately 42.80% per year and a 5-year EBITDA growth rate of 20.40% further underline its capacity for sustaining dividends.
Conclusion: Assessing Dividend Viability
Considering Cheniere Energy Partners LP's consistent dividend increases, robust yield on cost, and strong profitability metrics, the company presents a compelling case for dividend investors. However, the slightly high payout ratio and mixed growth metrics warrant careful monitoring. Investors should keep an eye on future earnings reports and market conditions that might impact dividend sustainability. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
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.
