Yahoo Finance CenterPoint Energy Inc's Dividend Analysis
Exploring the Sustainability and Growth of CenterPoint Energy's Dividends
CenterPoint Energy Inc (NYSE:CNP) recently announced a dividend of $0.20 per share, payable on June 13, 2024, with the ex-dividend date set for May 15, 2024. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis utilizes data from GuruFocus to evaluate the performance and sustainability of CenterPoint Energy Inc's dividends.
What Does CenterPoint Energy Inc Do?
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CenterPoint Energy Inc operates a diverse set of energy-related services. The company's regulated electric utilities serve over 2.5 million customers in areas including Houston, southern Indiana, and west central Ohio. Additionally, its natural gas distribution systems cater to around 4 million customers, establishing a substantial footprint in the energy sector.
A Glimpse at CenterPoint Energy Inc's Dividend History
Since 1986, CenterPoint Energy Inc has consistently paid dividends, with disbursements occurring quarterly. This long-standing commitment to returning value to shareholders highlights the company's financial stability and dedication to its shareholders.
Below is a chart showing the annual Dividends Per Share to track historical trends:
Breaking Down CenterPoint Energy Inc's Dividend Yield and Growth
Currently, CenterPoint Energy Inc boasts a trailing dividend yield of 2.61% and a forward dividend yield of 2.67%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 1.30%, but this growth rate declined to -9.40% over a five-year period and -3.10% over the last decade.
As of today, the 5-year yield on cost for CenterPoint Energy Inc stock is approximately 1.59%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, currently at 0.55, suggests that CenterPoint Energy retains a substantial portion of its earnings for future growth and stability. The company's profitability rank of 6 out of 10, combined with a history of net profit in 8 out of the past 10 years, supports a favorable outlook on its earnings capabilities.
Growth Metrics: The Future Outlook
CenterPoint Energy Inc's growth rank of 6 suggests a solid growth trajectory. However, its revenue per share and 3-year revenue growth rate of -0.60% per year indicate challenges, as it underperforms 85.69% of global competitors. Nonetheless, its 3-year EPS growth rate of 15.50% per year and a 5-year EBITDA growth rate of 5.50% provide a mixed but hopeful perspective on its ability to sustain dividends.
Conclusion: Evaluating Dividend Sustainability
Considering CenterPoint Energy Inc's consistent dividend payments, moderate payout ratio, and fair profitability and growth metrics, the company appears positioned to maintain its dividend distributions. However, investors should keep an eye on the declining dividend growth rates and mixed performance in revenue and earnings growth. For those seeking high-dividend yield opportunities, GuruFocus offers tools like the High Dividend Yield Screener to discover promising dividend stocks.
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.
