An In-depth Look at ENN Energy's Dividend Performance and Sustainability
ENN Energy Holdings Ltd(XNGSY, Financial) recently announced a dividend of $0.33 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-11-02. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into ENN Energy Holdings Ltd's dividend performance and evaluate its sustainability.
What Does ENN Energy Holdings Ltd Do?
ENN Energy Holdings primarily operates in the distribution and retailing of natural gas. As of the end of 2022, ENN owned 254 city gas projects in China, with an annual gas sales volume of 32.7 billion cubic meters. The company has connected piped gas to 27.9 million residential households, achieving an average gas penetration rate of 62.9%. ENN Energy has also ventured into the integrated energy business with 210 projects in operation.
A Glimpse at ENN Energy Holdings Ltd's Dividend History
ENN Energy Holdings Ltd has maintained a consistent dividend payment record since 2011, with dividends currently distributed bi-annually. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Breaking Down ENN Energy Holdings Ltd's Dividend Yield and Growth
As of today, ENN Energy Holdings Ltd has a 12-month trailing dividend yield of 4.95% and a 12-month forward dividend yield of 4.94%, indicating an expected decrease in dividend payments over the next 12 months. The company's dividend yield outperforms approximately 59.39% of global competitors in the Utilities - Regulated industry, making it an attractive proposition for income investors.
Over the past three years, ENN Energy Holdings Ltd's annual dividend growth rate was 31.70%. This rate decreased to 29.50% per year over a five-year horizon. However, over the past decade, the company's annual dividends per share growth rate stands at an impressive 22.50%. Consequently, the 5-year yield on cost of ENN Energy Holdings Ltd stock as of today is approximately 18.03%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of a dividend is often assessed through the company's payout ratio. The dividend payout ratio shows the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, ENN Energy Holdings Ltd's dividend payout ratio is 0.49.
ENN Energy Holdings Ltd's profitability rank is 9 out of 10 as of 2023-06-30, indicating good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for dividend sustainability. ENN Energy Holdings Ltd's growth rank of 9 out of 10 indicates a good growth trajectory relative to its competitors. The company's revenue has increased by approximately 16.10% per year on average, outperforming approximately 76.75% of global competitors.
ENN Energy Holdings Ltd'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, the company's earnings increased by approximately 1.10% per year on average, outperforming approximately 39.1% of global competitors. Furthermore, the company's 5-year EBITDA growth rate of 20.50% outperforms approximately 82.11% of global competitors.
Conclusion
In conclusion, ENN Energy Holdings Ltd's consistent dividend payments, impressive growth rate, reasonable payout ratio, high profitability, and robust growth metrics suggest a promising outlook for the company's dividend sustainability. Investors seeking income may find ENN Energy Holdings Ltd an attractive proposition. However, as with all investments, it's crucial to conduct thorough research and consider the company's overall financial health before making investment decisions.
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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.
