Stable Dividend Policy
Enel is described as a solid long-term player for dividend fans, offering consistent payouts and a moderate valuation. Enel has paid dividends continuously since its IPO in 1999. Since 2013, the company has increased the dividend every year, making it a so-called Dividend Achiever.
In the fiscal year 2024, Enel paid €0.43 per share, which corresponded to a dividend yield of about 6.24 percent based on the year-end price of €6.89. The payout ratio was around 65 percent of net profit.
Business Model and Stability
Enel, Europe’s largest energy provider, operates in over 30 countries, focusing on Italy, Spain, Brazil, and Chile. The company operates both conventional and renewable power plants and has its own green subsidiary, Enel Green Power. This diversification provides a stable basis for the business, as it benefits from both traditional energy sources and renewable energies.
Future Prospects
Enel plans to distribute 70 percent of net profit from 2025 to 2027. This indicates a continuation of the stable dividend policy. The next dividend payment is scheduled for July 23, 2025, with an ex-dividend date on July 21, 2025.
Thus, Enel offers a combination of stable dividend policy, moderate valuation, and a solid utility business, making it attractive for investors seeking regular income.