Our analysis is based on comparing Companhia Paranaense de Energia with the following peers – Centrais Eletricas Brasileiras S.A. – Eletrobras Sponsored ADR Pfd Class B, CPFL Energia S.A. Sponsored ADR, Companhia Energetica de Minas Gerais SA Sponsored ADR Pfd, AES Corporation, Enel Americas S.A. Sponsored ADR, EDP-Energias de Portugal SA Sponsored ADR, Edenor SA Sponsored ADR Class B, Korea Electric Power Corporation Sponsored ADR, Gerdau S.A. Sponsored ADR Pfd and Petroleo Brasileiro SA Sponsored ADR (EBR.B-US, CPL-US, CIG-US, AES-US, ENIA-US, EDPFY-US, EDN-US, KEP-US, GGB-US and PBR-US).
Companhia Paranaense de Energia’s dividend yield is 7.25 percent and its dividend payout is 53.27 percent. This compares to a peer median dividend yield of 4.36 percent and a payout level of 37.58 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
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 3 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 7.43x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), ELP-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 6.20x), investing cash flow (coverage of -8.98x), issuance cash flow (coverage of 3.41x) and twelve-month prior cash (coverage of 7.88x), for a total dividend coverage of 8.43x.
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 (%)||5.85||16.2||16.83||12.22||9.91||7.25|
|Dividend Payout (%)||32.07||55.15||55.47||25.78||38.49||25.34|
A complete list of metrics and analysis is available on the company page.
Companhia Paranaense de Energia engages in the generation, transmission, distribution and sale of electricity. It operates through the following segments: Power Generation and Transmission, Power Distribution and Sales, Telecommunications, Gas, and Holding Company. The Power Generation and Transmission segment involves in the generation of electric energy from hydraulic, wind, and thermal projects, the transport and transformation of the power. The Power Distribution and Sales segment offers distribution and sale of electric energy; the operation and maintenance of the distribution infrastructure. The Telecommunications segment includes telecommunications and general communications services. The Gas segment comprises the public service of piped natural gas distribution. The Holding Company segment includes participation in other companies. The company was founded on October 26, 1954 and is headquartered in Curitiba, Brazil.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.