ENGIE Brasil Energia SA : EGIEY-US: Dividend Analysis : November 13th, 2017 (record date) : By the numbers : November 10, 2017

Our analysis is based on comparing ENGIE Brasil Energia SA with the following peers – CPFL Energia S.A. Sponsored ADR, Centrais Eletricas Brasileiras S.A. – Eletrobras Sponsored ADR Pfd Class B, Companhia Paranaense de Energia Sponsored ADR Pfd Class B, SCANA Corporation, Duke Energy Corporation, Korea Electric Power Corporation Sponsored ADR, Cia de Transmissao de Energia Eletrica Paulista Sponsored ADR, Canadian Utilities Limited Class A, Petroleo Brasileiro SA Sponsored ADR and Eneva S.A. Sponsored ADR (CPL-US, EBR.B-US, ELP-US, SCG-US, DUK-US, KEP-US, CTPTY-US, CU-CA, PBR-US and ENEVY-US).

ENGIE Brasil Energia SA’s dividend yield is 6.03 percent and its dividend payout is 81.05 percent. This compares to a peer median dividend yield of 4.43 percent and a payout level of 53.27 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), EGIEY-US paid a low quality dividend, which represents a yield of 5.94% 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 4 were high quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 1.10x, provides a moderate 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 September 30, 2017), EGIEY-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 1.82x), investing cash flow (coverage of -1.33x), issuance cash flow (coverage of -0.51x) and twelve-month prior cash (coverage of 2.25x), for a total dividend coverage of 2.10x.

EGIEY-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.49x).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 7.02 7.48 5.53 3.81 4.85 6.03
Dividend Payout (%) 92.09 62.16 70.46 39.72 88.36 81.05

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

Company Profile

ENGIE Brasil Energia SA operates as a power generation company. Its activities include generation and commercialization of electrical energy. The company was founded on January 29, 1998 and is headquartered in Florianópolis, Brazil.

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