Consolidated Water Co. Ltd. : CWCO-US: Dividend Analysis : July 03rd, 2017 (record date) : By the numbers : August 17, 2017

Our analysis is based on comparing Consolidated Water Co. Ltd. with the following peers – American States Water Company, Connecticut Water Service, Inc., York Water Company, American Water Works Company, Inc., Middlesex Water Company, California Water Service Group, Companhia de Saneamento Basico do Estado de Sao Paulo SABESP Sponsored ADR and Veolia Environnement SA Sponsored ADR (AWR-US, CTWS-US, YORW-US, AWK-US, MSEX-US, CWT-US, SBS-US and VEOEY-US).

Consolidated Water Co. Ltd.’s dividend yield is 2.44 percent and its dividend payout is 150 percent. This compares to a peer median dividend yield of 2.06 percent and a payout level of 59.62 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 83 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), CWCO-US paid a high quality dividend, which represents a yield of 2.44% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 1 was medium quality and 3 were low quality.
  • The ending cash balance, with a dividend coverage of 10.32x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), CWCO-US paid a high 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 3.30x), investing cash flow (coverage of -0.35x), issuance cash flow (coverage of 0.07x) and twelve-month prior cash (coverage of 8.33x), for a total dividend coverage of 11.32x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 4.12 2.12 2.92 2.45 2.75 2.44
Dividend Payout (%) 46.88 51.72 71.43 58.82 111.11 150

A complete list of metrics and analysis is available on the company page.

Company Profile

Consolidated Water Co. Ltd. engages in the development and operation of seawater desalination plants and water distribution systems. The company operates through the following segments: Retail Water, Bulk Water, and Services Operations. The Retail Water Operations segment supplies water to end-users, including residential, commercial, and government customers. The Bulk Water Operations segment supplies potable water to government utilities in Grand Cayman, the Bahamas and Belize under long-term contracts. The Services Operations segment offers engineering and management services, which include designing and constructing desalination of desalination plants and the management and operation of desalination plants. The company was founded in 1973 and is headquartered in George Town, Cayman Islands.

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