An in-depth analysis of the upcoming dividend, historical payments, yield, growth, and sustainability of Chubu Electric Power Co Inc (CHUEF, Financial)
Chubu Electric Power Co Inc (CHUEF) recently announced a dividend of $25 per share, payable on an unspecified date, with the ex-dividend date set for 2023-09-28. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article offers an in-depth analysis of Chubu Electric Power Co Inc's dividend performance and its sustainability.
What Does Chubu Electric Power Co Inc Do?
Chubu Electric Power Co Inc is a Japanese electric utilities company operating in the Chubu region in central Japan. This region is one of Japan's largest manufacturing areas and hosts a variety of industries. The company primarily generates, distributes, and sells electricity, natural gas, and on-site energy products and services. Additionally, it provides overseas consulting, investment, and IT services. The company's main segments include Electric Power, which supplies electricity to residential, commercial, and industrial customers, and Energy, which sells natural gas and operates cogeneration facilities.
A Glimpse at Chubu Electric Power Co Inc's Dividend History
Chubu Electric Power Co Inc has maintained a consistent dividend payment record since 2020, with dividends currently distributed bi-annually. The chart below shows the annual Dividends Per Share for tracking historical trends.
Breaking Down Chubu Electric Power Co Inc's Dividend Yield and Growth
As of today, Chubu Electric Power Co Inc has a 12-month trailing dividend yield of 2.74% and a 12-month forward dividend yield of 2.90%. This implies an expected increase in dividend payments over the next 12 months. Over a five-year horizon, this rate has increased to 6.20% per year. The 5-year yield on cost of Chubu Electric Power Co Inc stock as of today is approximately 3.70%.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of the dividend requires an evaluation of the company's payout ratio. The dividend payout ratio provides insights into the proportion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring funds are available for future growth and unexpected downturns. As of 2023-06-30, Chubu Electric Power Co Inc's dividend payout ratio is 0.17.
Chubu Electric Power Co Inc's profitability rank provides an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chubu Electric Power Co Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 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. Chubu Electric Power Co 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 Chubu Electric Power Co Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Chubu Electric Power Co Inc's revenue has increased by approximately 9.20% per year on average, a rate that outperforms approximately 55.76% 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, Chubu Electric Power Co Inc's earnings increased by approximately -38.40% per year on average, a rate that outperforms approximately 6.68% of global competitors.
Conclusion
In conclusion, Chubu Electric Power Co Inc's consistent dividend payments, promising dividend growth rate, low payout ratio, fair profitability, and growth metrics indicate a sustainable dividend. However, investors should continue monitoring these factors to ensure the company's capacity to maintain its dividend payments. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
