Shares of DUET Group (ASX: DUE) have edged slightly higher today after the energy infrastructure company confirmed that it would meet its 2015 distribution guidance, despite forecasting a flat dividend payout for the 2016 financial year.
In an announcement to the market this morning, DUET said that it would distribute 8.75 cents per stapled security which would take the total for the year ending 30 June 2015 to 17.5 cents. The securities will trade ex-dividend on 26 June 2015 with the record date being 30 June 2015.
Provided that the group meets its forecast assumptions in the next financial year, DUET again expects to pay shareholders 17.5 cents per security, putting it on a yield of almost 7% (albeit unfranked).
As it stands, the company is trading on an enterprise multiple (that is the ratio between its enterprise value, taking into account its debt, and its earnings before interest, tax, depreciation and amortisation – otherwise referred to as the EV/EBITDA) of 14.6x, which is quite reasonable compared to its larger peer APA Group (ASX: APA), which trades on a EV/EBITDA of roughly 19x.
While investors could look to the $3.7 billion DUET Group for their dividends, The Motley Fool's top analysts have recently named another, even more attractive alternative stock.
