In This Article:
Assessing the Sustainability of KAEPF's Dividend Payments
Kansai Electric Power Co Inc (KAEPF) recently announced a dividend of $0.25 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-03-28. 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 look into Kansai Electric Power Co Inc's dividend performance and assess its sustainability.
What Does Kansai Electric Power Co Inc Do?
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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.
A Glimpse at 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-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down 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 2.48% and a 12-month forward dividend yield of 2.70%. This suggests an expectation of increased 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 3.20%.
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, Kansai Electric Power Co Inc's dividend payout ratio is 0.08.