We Wouldn't Be Too Quick To Buy Alterna Asesoría Internacional, S.A.B. de C.V. (BMV:ALTERNAB) Before It Goes Ex-Dividend

It looks like Alterna Asesoría Internacional, S.A.B. de C.V. (BMV:ALTERNAB) is about to go ex-dividend in the next two days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase Alterna Asesoría Internacional. de's shares before the 18th of December in order to receive the dividend, which the company will pay on the 20th of December.

The company's next dividend payment will be Mex$0.034 per share, on the back of last year when the company paid a total of Mex$0.06 to shareholders. Based on the last year's worth of payments, Alterna Asesoría Internacional. de stock has a trailing yield of around 4.2% on the current share price of MX$1.43. If you buy this business for its dividend, you should have an idea of whether Alterna Asesoría Internacional. de's dividend is reliable and sustainable. As a result, readers should always check whether Alterna Asesoría Internacional. de has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Alterna Asesoría Internacional. de

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Alterna Asesoría Internacional. de's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit Alterna Asesoría Internacional. de paid out over the last 12 months.

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time.

Given that Alterna Asesoría Internacional. de has only been paying a dividend for a year, there's not much of a past history to draw insight from.

The Bottom Line

Is Alterna Asesoría Internacional. de an attractive dividend stock, or better left on the shelf? Alterna Asesoría Internacional. de has been growing earnings per share at a reasonable rate, but over the last year its dividend was not well covered by earnings. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now.

With that being said, if you're still considering Alterna Asesoría Internacional. de as an investment, you'll find it beneficial to know what risks this stock is facing. For instance, we've identified 4 warning signs for Alterna Asesoría Internacional. de (1 shouldn't be ignored) you should be aware of.

If you're in the market for strong dividend payers, we recommend checking our selection of top 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.