An In-depth Look at Evergy Inc's Upcoming Dividend and Historical Performance
Evergy Inc (EVRG, Financial) has recently declared a dividend of $0.64 per share, scheduled for payment on June 20, 2024, with the ex-dividend date marked for May 17, 2024. As investors gear up for this forthcoming disbursement, it's crucial to delve into Evergy Inc's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will explore the performance and sustainability of Evergy Inc's dividends.
What Does Evergy Inc Do?
Evergy, a regulated electric utility, serves a significant portion of eastern Kansas and western Missouri. Its primary subsidiaries include Evergy Metro, Evergy Kansas Central, Evergy Missouri West, and Evergy Transmission Co. With a combined rate base of around $19 billion, distributed evenly between Kansas and the other areas under its operation, Evergy stands out as one of the leading wind energy providers in the United States.
A Glimpse at Evergy Inc's Dividend History
Since 1984, Evergy Inc has consistently paid dividends, currently on a quarterly basis. Remarkably, the company has raised its dividend annually since 2003, earning it the status of a dividend achiever—a recognition awarded to companies with at least 21 consecutive years of dividend increases.
Below is a chart showing the annual Dividends Per Share for Evergy Inc, illustrating historical trends.
Breaking Down Evergy Inc's Dividend Yield and Growth
Evergy Inc currently boasts a 12-month trailing dividend yield of 4.50% and a forward dividend yield of 4.61%, indicating anticipated increases in dividend payments over the next year. Over the past three years, Evergy Inc's annual dividend growth rate was 6.60%, which extends to 7.10% over a five-year period. The 5-year yield on cost for Evergy Inc's stock is approximately 6.34% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Evergy Inc's dividends can be gauged by examining its dividend payout ratio, which stands at 0.72 as of March 31, 2024. This ratio indicates that a substantial portion of earnings is being distributed as dividends, potentially impacting future growth and financial flexibility. Evergy Inc's profitability rank is 7 out of 10, reflecting strong earnings relative to its peers. The company has also reported consistent net income over the past decade, reinforcing its robust profitability profile.
Growth Metrics: The Future Outlook
Evergy Inc's growth rank is 7 out of 10, suggesting a favorable growth trajectory compared to its competitors. Despite a modest 3-year revenue growth rate of 3.40%, which lags behind 74.19% of global competitors, Evergy Inc has managed a 3-year EPS growth rate of 4.50%. Additionally, its 5-year EBITDA growth rate stands at 8.00%, which, while not leading, still positions it reasonably well among global peers.
Conclusion: Assessing Evergy Inc's Dividend Future
Considering Evergy Inc's consistent dividend payments, robust growth metrics, and a solid profitability rank, the company appears well-positioned to sustain its dividend distributions. However, the relatively high payout ratio warrants careful monitoring as it could constrain future growth opportunities. Investors should keep an eye on these dynamics when considering Evergy Inc as a potential addition to their investment portfolios.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
