RWE AG's Dividend Analysis
In This Article:
An In-depth Look at RWE AG's Upcoming Dividend and Financial Health
RWE AG (RWEOY) recently announced a dividend of $1.08 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-05-06. 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 RWE AG's dividend performance and assess its sustainability.
What Does RWE AG Do?
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Since the deal with E.On, RWE is refocused on power generation, mostly in Europe. It owns 38 gigawatts of power generation capacity: 28% from lignite and hard coal plants, 37% from gas plants, 40% from renewables including pumped storage and batteries. Besides Germany, RWE's power plants are chiefly located in the United Kingdom, the Netherlands, Turkey, and the United States for many onshore wind farms.
A Glimpse at RWE AG's Dividend History
RWE AG has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down RWE AG's Dividend Yield and Growth
As of today, RWE AG currently has a 12-month trailing dividend yield of 2.73% and a 12-month forward dividend yield of 3.00%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, RWE AG's annual dividend growth rate was 4.00%. Extended to a five-year horizon, this rate increased to 11.30% per year. Based on RWE AG's dividend yield and five-year growth rate, the 5-year yield on cost of RWE AG stock as of today is approximately 4.66%.
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, RWE AG's dividend payout ratio is 0.47.
RWE AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks RWE AG's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of past 10 years.