Eversource Energy shows a promising dividend profile with a consistent history of 42 years of payments. The current dividend yield stands at 4.71%, which highlights its appeal to income-oriented investors. However, the high EPS payout ratio of over 120% indicates potential sustainability challenges, which should be monitored closely.
The overview provides a snapshot of Eversource Energy's dividend profile and financial health within its sector.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Utilities | 4.71% | 2.80 USD | 42 years | None |
A detailed look at Eversource Energy's dividend payment history is essential for understanding its reliability and growth pattern.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.5050 |
| 2024 | 2.860 |
| 2023 | 2.700 |
| 2022 | 2.5500 |
| 2021 | 2.4100 |
Examining dividend growth is crucial for evaluating Eversource Energy's ability to enhance shareholder payouts over time.
| Time | Growth |
|---|---|
| 3 years | 5.87% |
| 5 years | 5.97% |
The average dividend growth is 5.97% over 5 years. This shows moderate but steady dividend growth.
Understanding the payout ratio is vital as it indicates the sustainability of Eversource Energy's dividends relative to earnings and free cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 120.38% |
| Free cash flow-based | -72.73% |
The EPS-based payout ratio of 120.38% suggests that the company is paying more in dividends than it earns, which may not be sustainable long-term. The negative FCF-based ratio further emphasizes potential liquidity concerns.
Analyzing cash flow and capital efficiency helps in assessing Eversource Energy's operational efficiency and investment returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -11.30% | -12.47% | -3.58% |
| Earnings Yield | 3.95% | -2.05% | 4.83% |
| CAPEX to Operating Cash Flow | 207.46% | 263.45% | 143.33% |
| Stock-based Compensation to Revenue | 0% | 0.23% | 0.27% |
| Free Cash Flow / Operating Cash Flow Ratio | -107.46% | -163.45% | -43.33% |
These metrics highlight concerning cash flow stability, with high CAPEX requirements putting pressure on free cash flow margins and potentially limiting strategic flexibility.
Balance sheet analysis sheds light on Eversource Energy's financial leverage and its capacity to handle obligations.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 193.59% | 188.76% | 148.26% |
| Debt-to-Assets | 48.85% | 48.11% | 43.10% |
| Debt-to-Capital | 65.94% | 65.37% | 59.72% |
| Net Debt to EBITDA | 7.04 | 19.12 | 5.39 |
| Current Ratio | 0.75 | 0.67 | 0.62 |
| Quick Ratio | 0.67 | 0.59 | 0.57 |
| Financial Leverage | 3.96 | 3.92 | 3.44 |
The leverage ratios indicate a high level of debt relative to equity and assets, which could expose the company to interest rate risks and financial strain in adverse market conditions.
Assessing fundamental strength and profitability measures ensures understanding of how well Eversource Energy is managing resources to generate profits.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 5.40% | -3.12% | 9.08% |
| Return on Assets | 1.36% | -0.80% | 2.64% |
| Net Margin | 6.82% | -3.71% | 11.43% |
| EBIT Margin | 19.79% | 4.87% | 20.70% |
| EBITDA Margin | 34.72% | 11.72% | 34.07% |
| Gross Margin | 31.12% | 40.69% | 44.02% |
| R&D to Revenue | 0% | 0% | 0% |
The profitability metrics show variable returns, emphasizing a need to improve operational efficiency and align costs with revenues to ensure profits.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
In conclusion, while Eversource Energy offers an attractive dividend yield and a long-standing commitment to dividend payments, investors should be wary of the high payout ratios and leverage levels. The company exhibits solid dividend continuity but faces challenges in terms of cash flow coverage and profitability. Investors should consider these factors carefully when making investment decisions.
Earnings Trade Analyser
Dividends Trade Analyser
Seasonality Trade Analyser - Annual
Seasonality Analyser - Intraday
Seasonal Strategies: Overview
Seasonal Strategy: 
Seasonal Strategy: 
Seasonal Strategy: 
Seasonal Strategy: 
Seasonal Portfolio Strategy Builder
Roth IRA Calculator