This article first appeared on GuruFocus .
A Closer Look at the Utility Giant's Upcoming Payout and Dividend Sustainability
Chubu Electric Power Co Inc ( CHUEF ) recently announced a total dividend of $0.22 per share with the ex-dividend date set for 2026-09-29, including $0.22 per share cash dividend payable on 0000-00-00. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Chubu Electric Power Co Inc's dividend performance and assess its sustainability.
What Does Chubu Electric Power Co Inc Do?
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Chubu Electric Power Co Inc is a Japanese electric utility serving the Chubu region of central Japan, including Nagoya and surrounding areas. It generates, transmits, and distributes electricity and supplies gas to residential, commercial, and industrial customers. Its operations span power generation, including thermal, hydroelectric, nuclear, and renewable sources, along with liquefied natural gas procurement and fuel trading through its JERA joint venture with Tokyo Electric Power. The company also provides power grid and network services, energy-related solutions, and overseas energy and infrastructure investments. Revenue comes primarily from regulated electricity and gas sales in its home region, supplemented by fuel and power trading, grid usage fees, and other energy services. Chubu Electric is one of Japan's largest utilities and continues to expand renewable energy and international operations.
A Glimpse at Chubu Electric Power Co Inc's Dividend History
Chubu Electric Power Co Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chubu Electric Power Co Inc's Dividend Yield and Growth
As of today, Chubu Electric Power Co Inc currently has a 12-month trailing dividend yield of 2.61% and a 12-month forward dividend yield of 2.60%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Chubu Electric Power Co Inc's annual dividend growth rate was 11.90%. Extended to a five-year horizon, this rate decreased to 6.90% per year. And over the past decade, Chubu Electric Power Co Inc's annual dividends per share growth rate stands at 9.00%.
Based on Chubu Electric Power Co Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Chubu Electric Power Co Inc stock as of today is approximately 3.64%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Chubu Electric Power Co Inc's dividend payout ratio is 0.28.
Chubu Electric Power Co Inc's profitability rank , offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chubu Electric Power Co Inc's profitability 6 out of 10 as of 2026-06-30, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Chubu Electric Power Co Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Chubu Electric Power Co Inc's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. Chubu Electric Power Co Inc's revenue has increased by approximately -3.80% per year on average, a rate that underperforms than approximately 71.81% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Chubu Electric Power Co Inc's earnings increased by approximately 52.40% per year on average, a rate that underperforms than approximately 9.87% of global competitors.
Next Steps for Dividend Investors
Chubu Electric Power Co Inc presents a mixed picture for income-focused investors. The company's modest payout ratio of 0.28 and consistent dividend record since 2020 suggest the current payout is well covered by earnings, leaving room for future distributions. However, the slight expected decline in the forward dividend yield, combined with a negative three-year revenue growth rate of -3.80%, raises questions about the pace of future dividend increases. On a positive note, the robust 52.40% average annual EPS growth over three years demonstrates meaningful earnings momentum that could support dividend growth if sustained. Value investors should weigh these factors carefully, monitoring regulatory developments in Japan's energy sector and the company's renewable expansion initiatives. Will Chubu Electric Power Co Inc's earnings momentum translate into reliable dividend growth for years to come?
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