AES Tiete Energia SA paid a total dividend of 1,182 million BRL last year, for a market capitalization of 5,729 millions.
Dividend per share of AES Tiete Energia SA is 3.00 BRL, and his stock market price 14.54 BRL.
According to the chart, where dividend yield is displayed, AES Tiete Energia SA has a dividend yield of 20.62%, which is higher than the amount offered by both the market average and companies from Brazil. It is also bigger than average of Utilities industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of AES Tiete Energia SA to maintain his current dividend of BRL 3.00 per share, an amount that accounts for 20.62%, we should study its payout ratio both on earnings and on cash-flows (see chart below). AES Tiete Energia SA payout on ernings is currently 243.90%, which is higher than the market average, and companies of Utilities industry, which are 40.24% and 49.39% respectively. Both figures show that AES Tiete Energia SA can have problems to keep with his present dividend yield.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of AES Tiete Energia SA is BRL 1.69 per share, which is lower than the dividend per share paid by the company of BRL 3.00, so the company does not generate enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of AES Tiete Energia SA, compared againt world market average, Brazil companies, Utilities industry and Electricity sector companies. You might also need to check full financial report of AES Tiete Energia SA.
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