Triple Point Energy Transition (LON:TENT) Has Announced A Dividend Of £0.0137

The board of Triple Point Energy Transition plc (LON:TENT) has announced that it will pay a dividend on the 12th of January, with investors receiving £0.0137 per share. This means the annual payment is 8.2% of the current stock price, which is above the average for the industry.

Check out our latest analysis for Triple Point Energy Transition

Triple Point Energy Transition Doesn't Earn Enough To Cover Its Payments

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Based on the last payment, the company wasn't making enough to cover what it was paying to shareholders. It will be difficult to sustain this level of payout so we wouldn't be confident about this continuing.

Looking forward, EPS could fall by 97.0% if the company can't turn things around from the last few years. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 55,858%, which is definitely a bit high to be sustainable going forward.

Triple Point Energy Transition Is Still Building Its Track Record

Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. There hasn't been much of a change in the dividend over the last 2 years. Triple Point Energy Transition hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

Dividend Growth Potential Is Shaky

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Let's not jump to conclusions as things might not be as good as they appear on the surface. Over the last year, Triple Point Energy Transition's EPS has fallen by 97%. Such a large drop can indicate that the business has run into some trouble and might end up in the dividend having to be reduced. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.

Triple Point Energy Transition's Dividend Doesn't Look Great

Overall, while some might be pleased that the dividend wasn't cut, we think this may help Triple Point Energy Transition make more consistent payments in the future. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Overall, the dividend is not reliable enough to make this a good income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 5 warning signs for Triple Point Energy Transition you should be aware of, and 2 of them are significant. Is Triple Point Energy Transition not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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