Yahoo Finance Elia Group SA/NV's Dividend Analysis
Exploring the Sustainability and Growth Prospects of Dividends
Upcoming Dividend Details
Elia Group SA/NV (ELIAF) recently announced a dividend of $1.99 per share, payable on June 3, 2024, with the ex-dividend date set for May 30, 2024. 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 Elia Group SA/NV's dividend performance and assess its sustainability.
Company Overview
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Elia Group SA/NV is a utility company that owns and develops electric grids in Central Europe. Elia maintains and operates high-voltage equipment and infrastructure projects, such as power lines, cables, and transformers. The company primarily generates revenue by serving as the electricity transmission system operator in both Germany and Belgium where it provides electric grid usage. Elia's Belgian and German operations are responsible for nearly all of its revenue. These countries also house most of the company's infrastructure investments. In its capacity as an electricity transmitter, Elia System facilitates long-term, day-ahead, and intraday energy markets.
Dividend History and Trends
Elia Group SA/NV has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth Analysis
As of today, Elia Group SA/NV currently has a 12-month trailing dividend yield of 1.89% and a 12-month forward dividend yield of 2.00%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Elia Group SA/NV's annual dividend growth rate was 4.30%. Extended to a five-year horizon, this rate decreased to 3.20% per year. Over the past decade, Elia Group SA/NV's annual dividends per share growth rate stands at 2.40%. Based on Elia Group SA/NV's dividend yield and five-year growth rate, the 5-year yield on cost of Elia Group SA/NV stock as of today is approximately 2.21%.
Evaluating Dividend Sustainability
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 December 31, 2023, Elia Group SA/NV's dividend payout ratio is 0.43. Elia Group SA/NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Elia Group SA/NV's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Future Growth Prospects
To ensure the sustainability of dividends, a company must have robust growth metrics. Elia Group SA/NV's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Elia Group SA/NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Elia Group SA/NV's revenue has increased by approximately 16.00% per year on average, a rate that outperforms approximately 74.34% 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, Elia Group SA/NV's earnings increased by approximately 5.60% per year on average, a rate that outperforms approximately 46.85% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.30%, which outperforms approximately 34.84% of global competitors.
Conclusion
Elia Group SA/NV's consistent dividend payments, combined with a strong payout ratio and solid growth metrics, suggest a promising outlook for dividend sustainability and growth. Investors seeking high-dividend yield opportunities may find Elia Group SA/NV an attractive option. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
