Yahoo Finance Cheniere Energy Inc's Dividend Analysis
Understanding the Dividend Dynamics of Cheniere Energy Inc (NYSE:LNG)
Cheniere Energy Inc (NYSE:LNG) recently announced a dividend of $0.44 per share, payable on 2024-05-17, with the ex-dividend date set for 2024-05-09. 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 Cheniere Energy Inc's dividend performance and assess its sustainability.
What Does Cheniere Energy Inc Do?
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Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.
A Glimpse at Cheniere Energy Inc's Dividend History
Cheniere Energy Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cheniere Energy Inc's Dividend Yield and Growth
As of today, Cheniere Energy Inc currently has a 12-month trailing dividend yield of 1.05% and a 12-month forward dividend yield of 1.10%. This suggests an expectation of increased dividend payments over the next 12 months. Cheniere Energy Inc's dividend yield of 1.05% is near a 10-year high and outperforms 10.1 of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on Cheniere Energy Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cheniere Energy Inc stock as of today is approximately 1.05%.
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, Cheniere Energy Inc's dividend payout ratio is 0.08.
Cheniere Energy Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cheniere Energy Inc's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 4 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cheniere Energy Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Cheniere Energy Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cheniere Energy Inc's revenue has increased by approximately 31.40% per year on average, a rate that outperforms approximately 76.13% 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, Cheniere Energy Inc's earnings increased by approximately 213.20% per year on average, a rate that outperforms approximately 97.95% of global competitors.
Conclusion: The Dividend Outlook for Cheniere Energy Inc
Cheniere Energy Inc's strategic positioning in the LNG market, combined with its solid dividend history and growth metrics, presents a promising case for income-focused investors. The company's ability to sustain and potentially increase its dividend payouts, supported by a healthy payout ratio and robust profitability, makes it an attractive option for those seeking reliable dividend income. As Cheniere continues to navigate the complexities of the energy sector, its dividend policy will likely play a crucial role in its overall financial strategy.
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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.
This article first appeared on GuruFocus.
