Yahoo Finance Kenon Holdings Ltd's Dividend Analysis
Assessing the Sustainability of Kenon Holdings Ltd's Upcoming Dividend
Kenon Holdings Ltd (NYSE:KEN) recently announced a dividend of $3.8 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-04-05. 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 Kenon Holdings Ltd's dividend performance and assess its sustainability.
What Does Kenon Holdings Ltd Do?
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Kenon Holdings Ltd is a holding company that operates dynamic, growth-oriented, businesses. The company's operating segments include OPC; CPV Group; and ZIM. It generates maximum revenue from the OPC segment. OPC operates in the Israeli electricity generation sector, including initiating, developing, constructing, and operating power plants and selling and supplying electricity. Geographically, it derives a majority of its revenue from Israel.
A Glimpse at Kenon Holdings Ltd's Dividend History
Kenon Holdings Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kenon Holdings Ltd's Dividend Yield and Growth
As of today, Kenon Holdings Ltd currently has a 12-month trailing dividend yield of 10.29% and a 12-month forward dividend yield of 24.29%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Kenon Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Kenon Holdings Ltd stock as of today is approximately 10.29%.
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 2023-12-31, Kenon Holdings Ltd's dividend payout ratio is 0.00.
Kenon Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kenon Holdings Ltd's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kenon Holdings Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Kenon Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kenon Holdings Ltd's revenue has increased by approximately 21.80% per year on average, a rate that outperforms approximately 69.86% of global competitors.
Engaging Conclusion
With Kenon Holdings Ltd's consistent dividend history, robust yield, and fair growth prospects, investors might view the company as a viable dividend-paying stock. The upcoming dividend payment adds to the appeal, particularly for those seeking income-generating investments. However, as with any investment, it is crucial to consider the sustainability of dividends in the light of the company's financial health and market position. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener. In the dynamic market landscape, will Kenon Holdings Ltd continue to be a reliable source of dividends for value investors? This is a question that warrants close attention as the payment date approaches.
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.
