This article first appeared on GuruFocus .
A Deep Dive into UGI Corp's Upcoming Dividend and Sustainability Metrics
UGI Corp ( NYSE:UGI ) recently announced a total dividend of $0.38 per share, with the ex-dividend date set for 2026-09-15. This payment includes a $0.38 per share cash dividend payable on 2026-10-01. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's look into UGI Corp's dividend performance and assess its sustainability.
What Does UGI Corp Do?
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UGI Corp is an American holding company that, through its subsidiaries, is involved in the transport and marketing of energy and related services. Its segments include AmeriGas Propane, UGI International, Midstream & Marketing, and Utilities. The AmeriGas Propane segment consists of the propane distribution business. The UGI International segment consists of LPG distribution businesses. The Midstream & Marketing segment consists of energy-related businesses. The Utilities segment consists of the regulated natural gas and electric distribution. The company derives a majority of its revenue from the UGI International segment.
A Glimpse at UGI Corp's Dividend History
UGI Corp has maintained a consistent dividend payment record since 1984. Dividends are currently distributed on a quarterly basis. UGI Corp has increased its dividend each year since 1984. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 42 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down UGI Corp's Dividend Yield and Growth
As of today, UGI Corp currently has a 12-month trailing dividend yield of 3.98% and a 12-month forward dividend yield of 3.98%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, UGI Corp's annual dividend growth rate was 2.10%. Extended to a five-year horizon, this rate increased to 3.00% per year. And over the past decade, UGI Corp's annual dividends per share growth rate stands at 6.20%.
Based on UGI Corp's dividend yield and five-year growth rate, the 5-year yield on cost of UGI Corp stock as of today is approximately 4.61%.
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, UGI Corp's dividend payout ratio is 0.51. UGI Corp's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks UGI Corp's profitability 7 out of 10 as of 2026-06-30, suggesting good profitability prospects. 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. UGI Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and UGI Corp's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. UGI Corp's revenue has increased by approximately -10.80% per year on average, a rate that underperforms than approximately 85.95% 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, UGI Corp's earnings increased by approximately 4.60% per year on average, a rate that underperforms than approximately 51.93% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 3.40%, which underperforms than approximately 58.13% of global competitors.
Next Steps
In conclusion, UGI Corp's upcoming dividend of $0.38 per share, payable on 2026-10-01, reflects its long-standing commitment to returning value to shareholders. With a payout ratio of 0.51 and a profitability rank of 7 out of 10, the dividend appears sustainable, though growth metrics like revenue and EPS lag behind peers. Value investors should weigh these factors carefully. For those seeking high-dividend opportunities, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener .
