Eni (BIT:ENI) Will Pay A Dividend Of €0.25

Eni S.p.A.'s (BIT:ENI) investors are due to receive a payment of €0.25 per share on 21st of May. This makes the dividend yield 7.8%, which is above the industry average. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Eni's Future Dividend Projections Appear Well Covered By Earnings While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Prior to this announcement, the company was paying out 96% of what it was earning, however the dividend was quite comfortably covered by free cash flows at a cash payout ratio of only 59%. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend. Over the next year, EPS is forecast to expand by 127.1%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 52% which would be quite comfortable going to take the dividend forward. BIT:ENI Historic Dividend May 18th 2025 Check out our latest analysis for Eni Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from €1.12 total annually to €1.05. The dividend has shrunk at a rate of less than 1% a year over this period. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. Eni's Dividend Might Lack Growth With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Eni has seen EPS rising for the last five years, at 36% per annum. EPS has been growing well, but Eni has been paying out a massive proportion of its earnings, which can make the dividend tough to maintain. Our Thoughts On Eni's Dividend Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We don't think Eni is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Eni that you should be aware of before investing. Is Eni not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. If you're looking to trade Eni, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers.With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account.Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer.Sponsored Content