Enel Spa is one of the largest energy providers in Europe and has established itself as a reliable performer for dividend fans. This article highlights some of the main reasons why Enel is an attractive option for long-term investors.
Business Model and Stability
Business Model: Enel operates in over 30 countries, with a clear focus on Italy, Spain, Brazil, and Chile. The company runs both conventional and renewable power plants and has established its own green subsidiary, Enel Green Power.
Stability: Thanks to its stable utility business, Enel benefits from the continuous demand for energy.
Dividend Policy
Continuous Dividends: Since its IPO in 1999, Enel has continuously paid dividends, thus belonging to the so-called dividend achievers.
Dividend Growth: Since 2013, the dividend has been increased annually, highlighting the financial stability of the company.
Payout Ratio: In the fiscal year 2024, the payout ratio was around 65 percent of net income. From 2025 to 2027, Enel plans to distribute 70 percent of net income.
Valuation and Attractiveness
Moderate Valuation: The moderate valuation makes Enel an attractive choice for investors aiming for stable returns.
Long-term Investment Strategy: Consistent payouts and a stable business model make Enel an ideal choice for long-term investors.
Dividend History and Forecast
Dividend History: In the fiscal year 2024, Enel paid €0.43 per share, resulting in a dividend yield of about 6.24 percent.
Forecast for 2025: The next dividend payment is planned for July 23, 2025, with an ex-date on July 21, 2025. An official announcement of the dividend amount is still pending.
Overall, Enel offers a combination of a stable business, continuous dividend growth, and moderate valuation, making it an attractive option for investors seeking long-term returns.