Arca Continental, SAB de CV (BMV: AC) is set to trade ex-dividend within the next four days. The ex-dividend date is one working day before the registration date, which is the deadline by which shareholders must be present on the books of the company to be eligible for the payment of a dividend. It is important to know the ex-dividend date because any transaction in the share must have been settled by the registration date at the latest. As a result, Arca Continental. Investors who buy the shares on or after December 13 will not receive the dividend, which will be paid on December 15.
The company’s next dividend payment will be Mex $ 1.10 per share, and over the past 12 months the company has paid a total of Mex $ 4.44 per share. Based on the value of last year’s payments, Arca Continental. de has a sliding return of 3.4% on the current price of MX $ 130.72. If you are buying this company for its dividend, you should know if Arca Continental. the de dividend is reliable and sustainable. We must therefore investigate whether Arca Continental. de can afford its dividend, and whether the dividend could increase.
Check out our latest review for Arca Continental. of
Dividends are usually paid out of business income, so if a business pays more than it earned, its dividend is usually at risk of being reduced. Arca Continental. de paid out more than half (67%) of its profits last year, which is a steady payout ratio for most companies. Having said that, even very profitable companies can sometimes not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by the cash flow. Fortunately, its dividend payments only took 36% of the free cash flow it generated, which is a comfortable payout ratio.
It is encouraging to see that the dividend is covered by both earnings and cash flow. This usually suggests that the dividend is sustainable, as long as profits don’t drop sharply.
Click here to view the company’s payout ratio, as well as analysts’ estimates of its future dividends.
Have profits and dividends increased?
Stocks of companies that generate sustainable earnings growth often offer the best dividend prospects because it’s easier to raise the dividend when earnings rise. If profits fall enough, the company could be forced to cut its dividend. That’s why it’s a relief to see Arca Continental. in earnings per share are up 8.0% per year over the past five years. Decent historic growth in earnings per share suggests Arca Continental. de has effectively increased shareholder value. However, it now pays more than half of its profits as dividends. It is therefore unlikely that the company will be able to reinvest heavily in its business, which could portend slower growth in the future.
Many investors will assess a company’s dividend performance by evaluating how much dividend payments have changed over time. Over the past 10 years, Arca Continental. de increased its dividend by around 15% per year on average. We are happy to see dividends increasing along with earnings over a number of years, which may be a sign that the company intends to share the growth with its shareholders.
Is Arca Continental. of an attractive dividend stock, or better left on the shelf? While earnings per share growth has been modest, Arca Continental. de dividend distributions are around an average level; without a sharp change in earnings, we think the dividend is probably quite sustainable. Fortunately, the company paid a conservatively small percentage of its free cash flow. Although he has some good things to do, we are a bit ambivalent and it would take more to convince us of Arca Continental. the dividend of.
In light of this, while Arca Continental. de has an attractive dividend, it is worth knowing the risks associated with this stock. Our analysis shows 1 warning sign for Arca Continental. of and you should be aware of this before you buy any stocks.
However, we don’t recommend simply buying the first dividend stock you see. Here is a list of interesting dividend paying stocks with a yield above 2% and a dividend coming soon.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.