Two Days Left Until Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) Trades Ex-Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) is about to go ex-dividend in just 2 days. You will need to purchase shares before the 25th of November to receive the dividend, which will be paid on the 27th of November.

The upcoming dividend for Grupo Rotoplas. de will put a total of Mex$1.03 per share in shareholders' pockets, up from last year's total dividends of Mex$0.40. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Grupo Rotoplas. de has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Grupo Rotoplas. de

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Grupo Rotoplas. de paid out a comfortable 42% of its profit last year.

Click here to see how much of its profit Grupo Rotoplas. de paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. So we're not too excited that Grupo Rotoplas. de's earnings are down 4.6% a year over the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Grupo Rotoplas. de has delivered 9.9% dividend growth per year on average over the past five years.

To Sum It Up

Should investors buy Grupo Rotoplas. de for the upcoming dividend? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. We think this is a pretty attractive combination, and would be interested in investigating Grupo Rotoplas. de more closely.

In light of that, while Grupo Rotoplas. de has an appealing dividend, it's worth knowing the risks involved with this stock. For example, Grupo Rotoplas. de has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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