Yahoo Finance Triple Point Energy Transition (LON:TENT) Has Affirmed Its Dividend Of £0.0138
Triple Point Energy Transition plc (LON:TENT) will pay a dividend of £0.0138 on the 19th of July. This means the annual payment is 8.3% of the current stock price, which is above the average for the industry.
See our latest analysis for Triple Point Energy Transition
Triple Point Energy Transition Might Find It Hard To Continue The Dividend
While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Triple Point Energy Transition is unprofitable despite paying a dividend, and it is paying out 129% of its free cash flow. This is quite a strong warning sign that the dividend may not be sustainable.
Over the next year, EPS might fall by 40.8% based on recent performance. This will push the company into unprofitability, which means the managers will have to choose between suspending the dividend, or paying it out of cash reserves.
Triple Point Energy Transition Is Still Building Its Track Record
The dividend has been pretty stable looking back, but the company hasn't been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. There hasn't been much of a change in the dividend over the last 3 years. Triple Point Energy Transition hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.
The Dividend Has Limited Growth Potential
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Triple Point Energy Transition's earnings per share has shrunk at 41% a year over the past three years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in.
Triple Point Energy Transition's Dividend Doesn't Look Great
Overall, this isn't a great candidate as an income investment, even though the dividend was stable this year. The company isn't making enough to be paying as much as it is, and the other factors don't look particularly promising either. Overall, this doesn't get us very excited from an income standpoint.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 4 warning signs for Triple Point Energy Transition (of which 3 are a bit unpleasant!) you should know about. Is Triple Point Energy Transition not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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