Recent Buy : Enagas

In June 43 shares of Enagás (ENG.MC) were added to the dividend machine for €25.51 per share including fees.

Enagás is a Spanish energy company which main activity is to operate the country’s natural gas grid. It manages approximately 11,000 km of pipelines throughout Spain, three underground storage facilities located in Serrablo (Huesca), Gaviota (Vizcaya) and Yela (Guadalajara), and four regasification plants: Barcelona, Huelva, Cartagena and Gijón.

Besides the Spanish operations Enagás is also involved as shareholder of TLA Altamira, a regasification plant in Mexico and participates in gas pipelines construction in that country. In 2012, it acquired a LNG terminal in Quintero, Chile.

In addition, Enagás has presence in Peru since 2014, when acquired the 20% of Transportadora de Gas del Perú (TgP) and purchased 30% of Compañía Operadora de Gas del Amazonas (Coga). In the same year, the consortium consisting of Enagás and Odebrecht was awarded the project for the South Peru Gas Pipeline. In June 2015, the company signed an agreement to raise stake in TgP to 24.34%.

Enagás also participates in two European projects. In September 2014, the company joined Trans Adriatic Pipeline (TAP), with a 16% stake, and in March 2015 it agreed with the Belgium Fluxys to jointly acquire Swedegas, the company which operates Sweden’s Gas System.

Dividend

Enagás pays two dividends per year: the interim dividend is paid in January and the final dividend in July. In the last 10 years Enagás managed to increase the dividend from € 0.33 in 2004 to €1.30 in 2014. On average this equals to a dividend increase of 14.69% per year.

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For the dividend machine the yield on cost currently equals a gross 5.1%. In 2015 Enagás is expected to contribute one dividend payment in July of a net €26.23

The portfolio page has been updated to reflect this purchase.

photo credit: Enagas

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