October 28, 2025 a 12:46 pm
EVRG: Dividend Analysis - Evergy, Inc.
Evergy, Inc. (EVRG) stands out as a utility company with a consistent dividend history spanning over four decades. Despite facing headwinds in the free cash flow domain, the company maintains a substantial dividend yield of 3.69%. Its ability to sustain and slowly grow its dividend payouts showcases a commitment to shareholder returns, appealing to income-focused investors seeking steady returns.
📊 Overview
Analyzing Evergy, Inc.'s dividend profile reveals the company's stability within the utility sector, complemented by a respectable dividend yield.
| Parameter | Value |
|---|---|
| Sector | Utilities |
| Dividend yield | 3.69% |
| Current dividend per share | 2.59 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📈 Dividend History
The extensive dividend history of Evergy, Inc. underscores its commitment to consistent shareholder rewards. This consistency serves as an indicator of financial resilience through different economic cycles.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.0025 |
| 2024 | 2.5950 |
| 2023 | 2.4800 |
| 2022 | 2.3300 |
| 2021 | 2.1775 |
🌱 Dividend Growth
Examining the growth of dividends over multiple periods helps in understanding the trajectory of shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 6.02% |
| 5 years | 6.10% |
The average dividend growth is 6.10% over 5 years. This shows moderate but steady dividend growth.
🚦 Payout Ratio
Payout ratios provide insight into the balance between dividend payments and earnings as well as cash flow, reflecting the sustainability of dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 71.06% |
| Free cash flow-based | -431.49% |
With an EPS payout ratio of 71.06%, the dividends are largely financed through earnings. However, the negative ratio based on free cash flow highlights potential concerns regarding cash inflow adequacy.
💧 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency ratios helps understand whether the company is generating adequate cash to cover both its operational and capital expenditures while funding dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -2.49% | -2.95% | -2.52% |
| Earnings Yield | 6.16% | 6.09% | 5.20% |
| CAPEX to Operating Cash Flow | 117.79% | 117.87% | 120.23% |
| Stock-based Compensation to Revenue | 0% | 0.32% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | -17.79% | -17.87% | -20.23% |
The low free cash flow yield and substantial CAPEX relative to operating cash flow suggest pressure on free cash generation, challenging dividend sustainability if continued.
🔍 Balance Sheet & Leverage Analysis
A sturdy balance sheet and manageable leverage are pivotal for long-term financial health and dividend security.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.41 | 1.36 | 1.27 |
| Debt-to-Assets | 0.44 | 0.42 | 0.41 |
| Debt-to-Capital | 0.59 | 0.58 | 0.56 |
| Net Debt to EBITDA | 5.32 | 5.43 | 5.47 |
| Current Ratio | 0.50 | 0.51 | 0.53 |
| Quick Ratio | 0.27 | 0.29 | 0.33 |
| Financial Leverage | 3.24 | 3.21 | 3.11 |
The elevated debt ratios indicate considerable leverage which could impact financial flexibility. Efforts to improve the current and quick ratios may strengthen liquidity standing.
📉 Fundamental Strength & Profitability
Evaluating profitability and return metrics provides insights into operational efficiency and overall business health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.77% | 7.57% | 7.94% |
| Return on Assets | 2.71% | 2.36% | 2.55% |
| Margins: Net | 14.94% | 13.28% | 12.85% |
| EBIT Margin | 25.16% | 23.19% | 20.64% |
| EBITDA Margin | 45.18% | 43.87% | 37.45% |
| Gross Margin | 51.90% | 50.21% | 44.88% |
| Research & Development to Revenue | 0% | 0% | 0% |
The profitability metrics reflect moderate efficiency gains, with enhanced margins over time indicating cost-control efforts, although opportunities for further improvement remain.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Performance |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 3/5 | |
| Payout Ratio | 3/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 2/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 28/40
✅ Rating
Evergy, Inc. presents as a solid dividend payer, marked by stability and modest growth in its distributions. The total dividend score of 28/40 suggests reliability, yet with areas requiring strategic improvements, particularly in cash flow sustainability. Investors seeking income with moderate risk should find appeal in its consistent dividend yield, albeit keeping an eye on efficiency improvements.