Assessing the Sustainability and Growth of Grupo Mexico SAB de CV's Dividends
Grupo Mexico SAB de CV (GMBXF, Financial) recently announced a dividend of $0.8 per share, payable on 2024-03-04, with the ex-dividend date set for 2024-02-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Grupo Mexico SAB de CV's dividend performance and evaluate its sustainability.
What Does Grupo Mexico SAB de CV Do?
Grupo Mexico SAB de CV is a conglomerate with significant interests in the mining and transportation sectors. It's a leading entity in the mining-metallurgic industry, focusing on the extraction and processing of precious and base metals. With a network of mines and projects across the Americas, Grupo Mexico SAB de CV produces essential commodities like copper, silver, and gold. Its transportation arm operates a vast railroad network, making it a pivotal player in Mexico's freight and logistics industry.
A Glimpse at Grupo Mexico SAB de CV's Dividend History
Grupo Mexico SAB de CV has a commendable track record of dividend payments, having consistently distributed dividends since 2009. The company opts for a quarterly dividend distribution, reflecting a stable cash flow and a commitment to shareholder returns. To visualize the company's dividend consistency and growth, here's a chart depicting the annual Dividends Per Share over time.
Breaking Down Grupo Mexico SAB de CV's Dividend Yield and Growth
Grupo Mexico SAB de CV boasts a trailing dividend yield of 4.35% and a forward dividend yield of 4.18%, signaling a slight anticipated decrease in dividend payments. Over the past three years, the company's dividend growth rate was an impressive 27.60%, which further increased to 30.50% over a five-year span. Looking at the decade-long trend, the annual dividends per share growth rate stands at a robust 19.50%.
Considering these figures, the 5-year yield on cost for Grupo Mexico SAB de CV stock is approximately 16.46%, a testament to the company's strong dividend performance.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for assessing dividend sustainability, and Grupo Mexico SAB de CV's ratio stands at a reasonable 0.44 as of the last reported period. This indicates a balanced approach to distributing earnings and retaining capital for growth. The company's profitability rank, which GuruFocus rates at 9 out of 10, underscores its strong earnings capability in comparison to industry peers. With consistent net income over the past decade, Grupo Mexico SAB de CV's profitability appears robust.
Growth Metrics: The Future Outlook
Grupo Mexico SAB de CV's growth rank of 9 out of 10 reflects a positive growth trajectory. While the company's revenue per share and 3-year revenue growth rate are strong, they lag behind approximately 51.11% of global competitors. In terms of earnings, the 3-year EPS growth rate indicates that Grupo Mexico SAB de CV is growing at a pace that outperforms 40.16% of its global peers. The 5-year EBITDA growth rate also demonstrates the company's capacity for sustained earnings before interest, taxes, depreciation, and amortization, outperforming 29.14% of global competitors.
Concluding Thoughts on Grupo Mexico SAB de CV's Dividend Profile
In summary, Grupo Mexico SAB de CV's dividend payments are characterized by a strong history, robust growth rates, and a prudent payout ratio. The company's profitability and growth metrics further reinforce the likelihood of continued dividend sustainability. Investors seeking high-dividend yield opportunities may find Grupo Mexico SAB de CV an attractive prospect, supported by its solid financial health and strategic market position. For a deeper dive into high-dividend yield stocks, GuruFocus Premium members can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
