Have you been waiting for América Móvil SAB de CV’s (NYSE:AMX) upcoming dividend of $0.16 per share? Then you only have to wait 4 more days before the stock pays out on 20 November 2017, and starts trading ex-dividend on the 26 October 2017. Should you diversify into AMX and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. View our latest analysis for América Móvil S.A.B. de C.V
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is it the top 25% annual dividend yield payer?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has it increased its dividend per share amount over the past?
- Can it afford to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does América Móvil S.A.B. de C.V fit our criteria?The current payout ratio for the stock is 42.62%, which means that the dividend is covered by earnings. Looking forward, analysts expect AMX to pay out 22.68% of its earnings leading to a dividend yield of 1.61%. Moreover, EPS should increase to $1.03. This means the company should be able to continue to payout dividends. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of AMX it has increased its DPS from $0.1 to $0.3 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. Relative to peers, AMX generates a yield of 1.65%, which is on the low-side for a wireless telecommunication services stock.
What this means for you:
Are you a shareholder? There’s not much to jump for joy about for América Móvil S.A.B. de C.V from a dividend stock perspective. If this is news to you, I recommend you rethink about the stock as part of you current holdings. It may be worth exploring other income stocks as alternatives to AMX or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? There not much to be excited about if we look at América Móvil S.A.B. de C.V from a dividend stock point of view. On the other hand, if you are not strictly just a dividend investor, AMX could still be offering some interesting investment opportunities. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of AMX.