June 25, 2025 a 03:31 am
📊 ETR: Dividend Analysis - Entergy Corporation
Entergy Corporation has a compelling dividend profile with a solid history of 52 years of dividend payments. Despite a moderate yield of 3.51%, the company maintains a robust commitment to returning capital to shareholders. No recent cuts or suspensions underline its resilience, making it an attractive option for income-focused investors.
Overview
🗣️ Entergy Corporation represents a robust prospect in the Utilities sector, distinguished by its consistent dividend payouts. With a dividend yield of 3.51% and a current dividend per share of $2.30, it sustains a reliable income stream. The company boasts a distinguished 52-year history of dividend payments, reflecting its long-term stability and shareholder-friendly approach.
| Attribute | Value |
|---|---|
| Sector | Utilities |
| Dividend yield | 3.51% |
| Current dividend per share | 2.30 USD |
| Dividend history | 52 years |
| Last cut or suspension | None |
Dividend History
📈 The historical consistency in Entergy's dividend payments underscores its financial stability and commitment to rewarding shareholders. Past performance is a valuable indication of potential future payouts.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.20 |
| 2024 | 4.025 |
| 2023 | 2.735 |
| 2022 | 3.06 |
| 2021 | 3.385 |
Dividend Growth
📉 The growth figures are essential in evaluating the future potential of the dividend payouts. Entergy shows a steady, albeit moderate growth over the last 3 and 5 years.
| Time | Growth |
|---|---|
| 3 years | 5.94% |
| 5 years | 4.66% |
The average dividend growth is 4.66% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
✅ Analyzing payout ratios provides insights into the sustainability of dividends. Entergy's payout ratio, based on EPS, is 73.45%. This percentage indicates a cautious dividend strategy but manageable within their earnings capacity. Their FCF-based ratio is negative, highlighting short-term challenges in free cash flow generation.
| Key figure | Ratio |
|---|---|
| EPS-based | 73.45% |
| Free cash flow-based | -51.90% |
Cashflow & Capital Efficiency
⚠️ Understanding Entergy's capital efficiency is critical to assessing its operational effectiveness. The company's negative free cash flow yield and other cash flow figures suggest that while there are challenges, efficiency measures may advance long-term stability.
| Year | 2023 | 2024 |
|---|---|---|
| Free Cash Flow Yield | -3.90% | -4.57% |
| Earnings Yield | 22.07% | 3.27% |
| CAPEX to Operating Cash Flow | 1.10 | 1.33 |
| Stock-based Compensation to Revenue | 0.00 | 0.00 |
| Free Cash Flow / Operating Cash Flow Ratio | -0.10 | -0.33 |
Balance Sheet & Leverage Analysis
🗣️ Entergy's balance sheet reveals its leverage position and liquidity standing. The company's debt ratios and solvency metrics inform us of its capacity to cover liabilities and manage debt effectively under challenging market conditions.
| Year | 2023 | 2024 |
|---|---|---|
| Debt-to-Equity | 1.79 | 1.92 |
| Debt-to-Assets | 0.44 | 0.45 |
| Debt-to-Capital | 0.64 | 0.66 |
| Net Debt to EBITDA | 5.30 | 6.02 |
| Current Ratio | 0.57 | 0.72 |
| Quick Ratio | 0.32 | 0.43 |
| Financial Leverage | 4.07 | 4.30 |
Fundamental Strength & Profitability
📈 Analyzing fundamental metrics like ROE, ROA, and profit margins reveal Entergy's ability to raise profits relative to its revenues and equity. Profitability metrics and margin percentages provide insights into operational efficiency and financial health.
| Year | 2023 | 2024 |
|---|---|---|
| Return on Equity | 16.12% | 7.04% |
| Return on Assets | 3.96% | 1.64% |
| Margins: Net | 19.44% | 8.93% |
| Margins: EBIT | 22.05% | 22.27% |
| Margins: EBITDA | 40.52% | 39.22% |
Price Development
Dividend Scoring System
✅ Utilizing a structured scoring system, Entergy Corporation's dividend policy and financial solidity can be quantitatively assessed. Each aspect is scored, aggregating to a cumulative judgment of its dividend-paying potential.
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 26/40
Rating
In conclusion, Entergy Corporation demonstrates dependable dividend policies with commendable continuity and stability whilst evidencing moderate growth. The company's financial position, buoyed by its strong historical performances, renders it a viable consideration for dividend-centric investors seeking stability over volatility.