Enel Chile SA's Dividend Analysis
Delving into Enel Chile SA's Dividend Sustainability and Growth Prospects
Enel Chile SA (NYSE:ENIC) recently announced a dividend of $0.03 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-01-18. 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 Enel Chile SA's dividend performance and assess its sustainability.
What Does Enel Chile SA Do?
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Enel Chile SA is an electricity utility company, which through its subsidiaries and affiliates is engaged in the generation, transmission and distribution of electricity businesses in Chile. It operates through two segments including Generation Business and Distribution and Network Business. The Generation Business Segment is comprised of a group of electricity companies that own electricity generating plants, whose energy is transmitted and distributed to end customers. The Distribution and Network Reportable Segment is comprised of a group of electricity companies operating under a public utility concession.
A Glimpse at Enel Chile SA's Dividend History
Enel Chile SA has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Enel Chile SA's Dividend Yield and Growth
As of today, Enel Chile SA currently has a 12-month trailing dividend yield of 11.77% and a 12-month forward dividend yield of 12.24%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Enel Chile SA's annual dividend growth rate was -38.30%. Extended to a five-year horizon, this rate increased to -9.40% per year. Based on Enel Chile SA's dividend yield and five-year growth rate, the 5-year yield on cost of Enel Chile SA stock as of today is approximately 7.18%.
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, Enel Chile SA's dividend payout ratio is 0.27.