Introduction
Enel, as one of the largest energy providers in Europe, offers a combination of consistent dividends and moderate valuation that makes it an attractive choice for dividend investors. Here are some key aspects that distinguish Enel as a dividend aristocrat:
Business Model and Stability
- Business Operations: Enel operates in over 30 countries, with a focus on Italy, Spain, Brazil, and Chile. The company manages both conventional and renewable power plants and has its own green subsidiary, Enel Green Power.
- Customer Base and Diversification: Enel serves approximately 70 million customers worldwide and has a well-diversified portfolio that secures predictable earnings even in economically turbulent times.
- Resilience: Although the regulated network business has low margins, it offers a high level of resilience.
Dividend Policy
- Dividend Yield: In the fiscal year 2024, Enel declared a dividend of 0.43 euros per share, which corresponded to a dividend yield of 6.24 percent based on a year-end price of 6.89 euros.
- Payout Ratio: The payout ratio for 2024 was approximately 65 percent of net profit. For the period from 2025 to 2027, Enel plans to distribute 70 percent of net profit.
- Current Dividend Yield: A recent dividend was 0.5100 euros per share, corresponding to a dividend yield of about 6.3200 percent.
Valuation and Outlook
- Price-Earnings Ratio (P/E): Enel has a moderate P/E ratio of about 11.8, indicating a stable margin and continuous deleveraging.
- Market Capitalization and Performance: Enel’s market capitalization is approximately 82.45 billion euros. The stock has displayed strong performance over the past 12 months with +23.09 percent growth.
- Analyst Opinions: Analyst price targets range between 6.00 euros and 9.00 euros, with an average target price of around 7.81 euros.
Overall, Enel provides a stable foundation for dividend investors through its consistent payouts, moderate valuation, and solid business model, which secures predictable earnings even in turbulent times.