Yahoo Finance Aboitiz Power Corp's Dividend Analysis
Investigating the Sustainability of Aboitiz Power Corp's Upcoming Dividend
Aboitiz Power Corp (ABZPF) recently announced a dividend of $2.3 per share, payable on 2024-03-26, with the ex-dividend date set for 2024-03-18. 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 Aboitiz Power Corp's dividend performance and assess its sustainability.
What Does Aboitiz Power Corp Do?
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Aboitiz Power Corp is an electric utility company operating in the Philippines, with Aboitiz Equity Ventures as the majority shareholder. Through its subsidiaries, Aboitiz Power generates and distributes electricity, controlling a diverse portfolio of energy sources, including geothermal, hydroelectric, solar, wind, oil-fired, and coal-fired power plants. Although most of Aboitiz Power's energy production is derived from non-renewable facilities, hydroelectric sites play a significant role in its operations. The company's revenue is primarily generated from its power generation business, with a substantial portion also coming from distribution. Aboitiz Power's clientele consists mainly of private utilities, the state-owned power provider, and various industrial and commercial customers.
A Glimpse at Aboitiz Power Corp's Dividend History
Aboitiz Power Corp has upheld a consistent dividend payment track record since 2021, distributing dividends annually. Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down Aboitiz Power Corp's Dividend Yield and Growth
As of today, Aboitiz Power Corp boasts a 12-month trailing dividend yield of 5.38% and a forward dividend yield of 6.41%, indicating anticipated increases in dividend payments over the next year. However, the company's dividend growth rates tell a different story. Over the past three years, Aboitiz Power Corp's annual dividend growth rate was -0.50%, which further declined to -3.90% per annum over a five-year span. The ten-year annual dividends per share growth rate stands at -1.50%. When considering the dividend yield and five-year growth rate, the 5-year yield on cost for Aboitiz Power Corp stock is approximately 4.41%.
The Sustainability Question: Payout Ratio and Profitability
When assessing dividend sustainability, the dividend payout ratio is a critical metric. It indicates the proportion of earnings distributed as dividends. A lower ratio implies greater retained earnings for future growth and stability. As of 2023-09-30, Aboitiz Power Corp's dividend payout ratio stands at 0.39, suggesting a balanced approach to dividend payments and earnings retention. Furthermore, Aboitiz Power Corp's profitability rank is 9 out of 10, indicating strong profitability prospects when compared to peers. This is supported by a decade of consistent positive net income.
Growth Metrics: The Future Outlook
Aboitiz Power Corp's growth rank of 9 out of 10 underscores a robust growth trajectory. The company's revenue per share and 3-year revenue growth rate of 15.60% annually outperform approximately 74.34% of global competitors. Aboitiz Power Corp's 3-year EPS growth rate of 17.80% annually also surpasses about 73.44% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 1.60% outperforms nearly 36.67% of global peers.
Next Steps
In conclusion, Aboitiz Power Corp's upcoming dividend payment, historical yield, and growth rates present a mixed picture for investors. While the dividend yield is attractive, the negative growth rates raise questions about long-term sustainability. However, the company's low payout ratio, strong profitability, and solid growth metrics provide reassurance. These factors suggest that Aboitiz Power Corp may have the capacity to maintain or potentially increase dividends in the future. Investors should consider these aspects alongside their investment strategy and risk appetite. For those seeking high-dividend yield stocks, GuruFocus Premium offers a tailored High Dividend Yield Screener to discover opportunities aligned with their investment goals.
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.
