Grupo Carso. de's (BMV:GCARSOA1) Dividend Will Be MX$0.75

The board of Grupo Carso, S.A.B. de C.V. (BMV:GCARSOA1) has announced that it will pay a dividend on the 19th of December, with investors receiving MX$0.75 per share. Including this payment, the dividend yield on the stock will be 1.2%, which is a modest boost for shareholders' returns.

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Grupo Carso. de's Projected Earnings Seem Likely To Cover Future Distributions

If it is predictable over a long period, even low dividend yields can be attractive. Before making this announcement, Grupo Carso. de was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS could expand by 12.4% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 28% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Grupo Carso. de

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the annual payment back then was MX$0.84, compared to the most recent full-year payment of MX$1.50. This implies that the company grew its distributions at a yearly rate of about 6.0% over that duration. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once.

The Dividend Looks Likely To Grow

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Grupo Carso. de has seen EPS rising for the last five years, at 12% per annum. Grupo Carso. de definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Grupo Carso. de Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Are management backing themselves to deliver performance? Check their shareholdings in Grupo Carso. de in our latest insider ownership analysis. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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