Central Puerto SA's Dividend Analysis
Assessing the Sustainability and Growth of Central Puerto SA's Dividend Payments
Central Puerto SA (NYSE:CEPU) recently announced a dividend of $0.07 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-01-12. 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 Central Puerto SA's dividend performance and assess its sustainability.
What Does Central Puerto SA Do?
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Central Puerto SA is a private sector power generation company. It is mainly engaged in electric power generation and commercialization. The company is also involved in the natural gas distribution public sector service in the Cuyo and Centro regions in Argentina. The Group has three reporting segments: production of electric power from conventional sources, production of electric power from renewable sources, and natural gas transport and distribution. The company derives maximum revenue from the Electric Power Generation from conventional sources segment.
A Glimpse at Central Puerto SA's Dividend History
Central Puerto SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Central Puerto SA's Dividend Yield and Growth
As of today, Central Puerto SA currently has a 12-month trailing dividend yield of 9.55% and a 12-month forward dividend yield of 10.31%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Central Puerto SA's annual dividend growth rate was 59.50%. Based on Central Puerto SA's dividend yield and five-year growth rate, the 5-year yield on cost of Central Puerto SA stock as of today is approximately 9.55%.
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 2023-09-30, Central Puerto SA's dividend payout ratio is 0.00.