Our analysis is based on comparing Companhia Energética de Minas Gerais SA with the following peers – FirstEnergy Corp., Consolidated Edison, Inc., Centrais Eletricas Brasileiras S.A. – Eletrobras Sponsored ADR Pfd Class B, Power Assets Holdings Limited Sponsored ADR, Companhia Paranaense de Energia Sponsored ADR, SSE plc Sponsored ADR, EDP-Energias de Portugal SA Sponsored ADR, CPFL Energia S.A. Sponsored ADR and Enel Americas S.A. (FE-US, ED-US, EBR.B-US, HGKGY-US, ELPVY-US, SSEZY-US, EDPFY-US, CPL-US and ENELAM-CL).
Companhia Energética de Minas Gerais SA’s dividend yield is 2.40 percent and its dividend payout is 37.29 percent. This compares to a peer average dividend yield of 4.39 percent and a payout level of 52.28 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 2.77x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), CIG.C-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.90x), investing cash flow (coverage of -0.56x), issuance cash flow (coverage of -0.87x) and twelve-month prior cash (coverage of 3.97x), for a total dividend coverage of 3.77x.
CIG.C-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.87x).
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||20.98||60.09||72.25||31.8||18.09||2.4|
|Dividend Payout (%)||40.91||148.21||124.89||32.26||201.77||91.88|
A complete list of metrics and analysis is available on the company page.
Companhia EnergÃ©tica de Minas Gerais SA engages in the generation, transmission, distribution and sale of electricity, gas distribution, telecommunications and the provision of energy solutions. It operates through the following segments: Generation, Transmission, Distribution, and Other Businesses. The Generation segment engages in the generation of electricity through hydroelectric plants, thermoelectric plants and wind farms. The Transmission segment engages in the electric power transmission business, which consists of transporting electric power from the facilities where it broadcasted to the distribution networks for delivery to final users. The Distribution segment engages in the supply electricity to consumers in the state of Minas Gerais. The Other Businesses segment engages in the telecommunications, national and international energy solutions, and exploitation of natural gas. The company was founded by Juscelino Kubitschek de Oliveira on May 22, 1952 and is headquartered in Belo Horizonte, Brazil.
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