An In-Depth Look at VTMX's Dividend Sustainability and Growth
Corporacion Inmobiliaria Vesta SAB de CV (VTMX, Financial) recently announced a dividend of $0.18 per share, payable on 0000-00-00, with the ex-dividend date set for 2024-04-12. 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 look into Corporacion Inmobiliaria Vesta SAB de CV's dividend performance and assess its sustainability.
What Does Corporacion Inmobiliaria Vesta SAB de CV Do?
Corporacion Inmobiliaria Vesta SAB de CV is a real estate company dedicated to the development and leasing of industrial buildings and distribution centers in Mexico. The company designs and constructs park-to-suit projects across various industries; undertakes build-to-suit projects; and provides site selection, design and engineering, and sale and leaseback services. It serves aerospace, automotive, food and beverage, logistics, medical devices, plastics, and other industries.
A Glimpse at Corporacion Inmobiliaria Vesta SAB de CV's Dividend History
Corporacion Inmobiliaria Vesta SAB de CV has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis.
Corporacion Inmobiliaria Vesta SAB de CV has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Corporacion Inmobiliaria Vesta SAB de CV's Dividend Yield and Growth
As of today, Corporacion Inmobiliaria Vesta SAB de CV currently has a 12-month trailing dividend yield of 1.43% and a 12-month forward dividend yield of 1.94%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Corporacion Inmobiliaria Vesta SAB de CV's annual dividend growth rate was -3.90%. Extended to a five-year horizon, this rate increased to 7.50% per year. And over the past decade, Corporacion Inmobiliaria Vesta SAB de CV's annual dividends per share growth rate stands at an impressive 17.00%.
Based on Corporacion Inmobiliaria Vesta SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Corporacion Inmobiliaria Vesta SAB de CV stock as of today is approximately 2.05%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Corporacion Inmobiliaria Vesta SAB de CV's dividend payout ratio is 0.24.
Corporacion Inmobiliaria Vesta SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Corporacion Inmobiliaria Vesta SAB de CV's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Corporacion Inmobiliaria Vesta SAB de CV's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Corporacion Inmobiliaria Vesta SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Corporacion Inmobiliaria Vesta SAB de CV's revenue has increased by approximately -8.30% per year on average, a rate that underperforms than approximately 74.97% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Corporacion Inmobiliaria Vesta SAB de CV's earnings increased by approximately 20.10% per year on average, a rate that underperforms than approximately 31.12% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 5.50%, which underperforms than approximately 48.23% of global competitors.
Next Steps
In conclusion, while Corporacion Inmobiliaria Vesta SAB de CV boasts a commendable dividend history and presents a forward-looking yield that hints at optimism, investors must also weigh the company's growth prospects and payout sustainability. The dividend growth rate, payout ratio, profitability, and growth metrics paint a nuanced picture of VTMX's ability to maintain and potentially increase its dividends. As value investors consider adding VTMX to their portfolios, they should keep an eye on these factors to ensure their investment aligns with their income and growth objectives. Will Corporacion Inmobiliaria Vesta SAB de CV continue its trajectory as a dividend king, or will market dynamics demand a strategic reassessment? Only time and continued analysis will tell.
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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.
