Equatorial Energia SA's Dividend Analysis
In This Article:
Exploring the Dividend Performance and Sustainability of Equatorial Energia SA
Equatorial Energia SA (EQUEY) recently announced a dividend of $0.01 per share, payable on 2024-06-14, with the ex-dividend date set for 2024-06-10. 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 Equatorial Energia SAs dividend performance and assess its sustainability.
What Does Equatorial Energia SA Do?
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Equatorial Energia SA is primarily a holding company engaged in the ownership of other firms in the electric energy generation and distribution industries in Brazil. Collectively, Equatorial Energia's main subsidiaries are involved in electric energy distribution, telecommunications, data transmission, electric energy generation, and the operation and implementation of thermoelectric power plants in the country. The company's operating segments are Distribution, Transmission, Services, Trading, Central Administration, and Others. Revenue from the provision of construction services is significant for Equatorial Energia SA.
A Glimpse at Equatorial Energia SA's Dividend History
Equatorial Energia SA has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Equatorial Energia SA's Dividend Yield and Growth
As of today, Equatorial Energia SA currently has a 12-month trailing dividend yield of 1.49% and a 12-month forward dividend yield of 1.49%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Equatorial Energia SA's annual dividend growth rate was 3.10%. Extended to a five-year horizon, this rate increased to 21.40% per year. And over the past decade, Equatorial Energia SA's annual dividends per share growth rate stands at an impressive 26.50%.
Based on Equatorial Energia SA's dividend yield and five-year growth rate, the 5-year yield on cost of Equatorial Energia SA stock as of today is approximately 3.93%.
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 2024-03-31, Equatorial Energia SA's dividend payout ratio is 0.13.