March 11, 2026 a 03:31 pm
FE: Dividend Analysis - FirstEnergy Corp.
FirstEnergy Corp. presents a stable dividend profile with a respectable yield of 3.55%. Despite a historically high payout ratio, the company showcases fewer dividend cuts or suspensions over the last 29 years. This makes FirstEnergy a potentially appealing option for dividend-focused investors seeking consistent returns.
📊 Overview
The company's dividend yield of 3.55% is backed by an established dividend history of 29 years, indicating robust shareholder distribution strength, albeit with a substantial EPS payout ratio.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend yield | 3.55% |
| Current dividend per share | $1.76 USD |
| Dividend history | 29 years |
| Last cut or suspension | None |
📈 Dividend History
The stability of FirstEnergy’s dividends over nearly three decades speaks volumes about its commitment to rewarding shareholders.
| Year | Dividend per Share |
|---|---|
| 2026 | $0.91 |
| 2025 | $1.76 |
| 2024 | $1.68 |
| 2023 | $1.58 |
| 2022 | $1.56 |
📉 Dividend Growth
FirstEnergy exhibits a modest but sustained dividend growth, which is crucial for long-term income-oriented investors.
| Time | Growth |
|---|---|
| 3 years | 4.10% |
| 5 years | 2.44% |
The average dividend growth is 2.44% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
The payout ratio is critical in assessing the sustainability of dividend payments. FirstEnergy's EPS payout ratio of 99.61% suggests extensive commitment to returning profits, but also a potential risk in volatile market conditions.
| Key figure | Ratio |
|---|---|
| EPS-based | 99.61% |
| Free cash flow-based | 40.16% |
While the EPS payout is on the higher side, reflecting vulnerability to earnings fluctuations, the FCF-based ratio is more conservative, indicating sufficient cash flow cover.
✅ Cashflow & Capital Efficiency
An analysis of cash flow yields and capital efficiency metrics provides insight into FirstEnergy's operational sustainability and ability to invest in future growth.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | -3.89% | -4.98% | -9.37% |
| Earnings Yield | 3.95% | 4.28% | 5.25% |
| CAPEX to Operating Cash Flow | 127.16% | 139.40% | 241.96% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | -27.16% | -39.40% | -141.96% |
Lower cash flow yields and high CAPEX ratios point to capital reinvestment, possibly aimed at long-term growth. A high FCF/OCF ratio posits challenges in maintaining current cash flow levels.
⚠️ Balance Sheet & Leverage Analysis
Evaluating balance sheet metrics is crucial to assess FirstEnergy’s financial health and potential risk arising from its leverage.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 2.16 | 1.95 | 2.39 |
| Debt-to-Assets | 48.42% | 46.63% | 51.08% |
| Debt-to-Capital | 68.39% | 66.08% | 70.47% |
| Net Debt to EBITDA | 6.15 | 5.89 | 6.27 |
| Current Ratio | 0.57 | 0.56 | 0.48 |
| Quick Ratio | 0.46 | 0.45 | 0.38 |
| Financial Leverage | 4.47 | 4.18 | 4.67 |
High debt ratios indicate substantial leverage, which could pose liquidity risks. Although financial leverage is substantial, it reflects FirstEnergy's capacity to use debt advantageously but with caution.
📈 Fundamental Strength & Profitability
Analyzing return ratios offers insights into FirstEnergy’s operational effectiveness and profit generation capability.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 8.15% | 7.85% | 10.56% |
| Return on Assets | 1.82% | 1.88% | 2.26% |
| Margins: Net | 6.76% | 7.26% | 8.56% |
| Margins: EBIT | 18.77% | 18.67% | 19.36% |
| Margins: EBITDA | 29.08% | 30.46% | 30.71% |
| Margins: Gross | 54.77% | 67.52% | 63.90% |
| R&D to Revenue | 0% | 0% | 0% |
Solid return ratios indicate profitability and efficient asset utilization. Despite zero R&D spending, profitability remains robust, driven by higher gross and net margins.
📉 Price Development
Dividend Scoring System
| Category | Score | Representation |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
Rating
FirstEnergy Corp. holds a robust dividend profile with high stability and continuity, making it attractive for income investors despite some leverage and payout ratio concerns. Suitable for long-term dividend strategies, with moderate growth potential.