There's A Lot To Like About Corporación Actinver S. A. B. de C. V's (BMV:ACTINVRB) Upcoming Mex$0.05 Dividend

It looks like Corporación Actinver, S. A. B. de C. V. (BMV:ACTINVRB) is about to go ex-dividend in the next day or so. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase Corporación Actinver S. A. B. de C. V's shares on or after the 28th of September will not receive the dividend, which will be paid on the 2nd of October.

The company's next dividend payment will be Mex$0.05 per share. Last year, in total, the company distributed Mex$0.25 to shareholders. Based on the last year's worth of payments, Corporación Actinver S. A. B. de C. V has a trailing yield of 1.7% on the current stock price of MX$14.45. 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 Corporación Actinver S. A. B. de C. V has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Corporación Actinver S. A. B. de C. V

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Corporación Actinver S. A. B. de C. V paid out just 10% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Corporación Actinver S. A. B. de C. V has grown its earnings rapidly, up 22% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Corporación Actinver S. A. B. de C. V has delivered 5.2% dividend growth per year on average over the past 10 years. Earnings per share have been growing much quicker than dividends, potentially because Corporación Actinver S. A. B. de C. V is keeping back more of its profits to grow the business.

Final Takeaway

Should investors buy Corporación Actinver S. A. B. de C. V for the upcoming dividend? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. We think this is a pretty attractive combination, and would be interested in investigating Corporación Actinver S. A. B. de C. V more closely.

Wondering what the future holds for Corporación Actinver S. A. B. de C. V? See what the two analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.