In This Article:
Exploring the Sustainability and Growth of E.ON SE's Dividends
E.ON SE (EONGY) recently announced a dividend of $0.58 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-17. 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 E.ON SE's dividend performance and assess its sustainability.
What Does E.ON SE Do?
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Since completing the transformative deal with RWE in 2019, E.ON SE has two core businesses: energy networks and customer solutions. Its retail supply serves around 47 million customers primarily in Germany, the United Kingdom, Eastern Europe, the Netherlands, Belgium, and Sweden. Its networks business operates in Germany, Sweden, Eastern Europe, and Turkey.
A Glimpse at E.ON SE's Dividend History
E.ON SE has maintained a consistent dividend payment record since 1998. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down E.ON SE's Dividend Yield and Growth
As of today, E.ON SE currently has a 12-month trailing dividend yield of 3.83% and a 12-month forward dividend yield of 4.04%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, E.ON SE's annual dividend growth rate was 3.50%. Extended to a five-year horizon, this rate increased to 9.20% per year. And over the past decade, E.ON SE's annual dividends per share growth rate stands at -3.80%.
Based on E.ON SE's dividend yield and five-year growth rate, the 5-year yield on cost of E.ON SE stock as of today is approximately 5.95%.
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, E.ON SE's dividend payout ratio is 0.09.
E.ON SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks E.ON SE'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.