An in-depth analysis of the company's dividend history, yield, growth rates, and sustainability
Kansai Electric Power Co Inc(KAEPF, Financial) recently announced a dividend of $25 per share, payable on an upcoming date, with the ex-dividend date set for 2023-09-28. 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 deep dive into Kansai Electric Power Co Incs dividend performance and assess its sustainability.
About Kansai Electric Power Co Inc
Kansai Electric Power Co Inc is an electric utility company that supplies power to the Kansai region of the Japanese archipelago. The company controls a portfolio of hydroelectric, thermal, nuclear, and solar power plants located in Kansai and in other countries throughout Southeast Asia. The vast majority of the energy produced by Kansai Electric comes from its thermal facilities. The company generates most of its revenue from the sale of electricity, heat, and gas to households and corporate customers. Kansai Electric's utility services, information technology, and real estate businesses also represent substantial revenue streams. The company provides energy to a significant percentage of the Japanese population.
Reviewing Kansai Electric Power Co Inc's Dividend History
Kansai Electric Power Co Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding Kansai Electric Power Co Inc's Dividend Yield and Growth
As of today, Kansai Electric Power Co Inc currently has a 12-month trailing dividend yield of 2.51% and a 12-month forward dividend yield of 2.66%. This suggests an expectation of increase dividend payments over the next 12 months. Extended to a five-year horizon, this rate increased to 5.20% per year. Based on Kansai Electric Power Co Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Kansai Electric Power Co Inc stock as of today is approximately 3.23%.
Assessing Dividend Sustainability: 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 2023-06-30, Kansai Electric Power Co Inc's dividend payout ratio is 0.20.
Kansai Electric Power Co Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kansai Electric Power Co Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.
The Future Outlook: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Kansai Electric Power Co Inc'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 Kansai Electric Power Co Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kansai Electric Power Co Inc's revenue has increased by approximately 7.50% per year on average, a rate that underperforms than approximately 56.2% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Kansai Electric Power Co Inc's earnings increased by approximately -48.60% per year on average, a rate that underperforms than approximately 91.58% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -28.60%, which underperforms than approximately 94.02% of global competitors.
Conclusion
In conclusion, while Kansai Electric Power Co Inc's consistent dividend payments and fair profitability rank may be appealing to investors, the company's growth metrics present a mixed picture. The future sustainability of its dividends will largely depend on the company's ability to improve its revenue and earnings growth rates. Therefore, investors should carefully monitor these factors alongside the company's payout ratio and profitability rank when making investment decisions.
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