Bolsa Mexicana de Valores. de (BMV:BOLSAA) Is Increasing Its Dividend To MX$2.30

The board of Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA) has announced that the dividend on 15th of May will be increased to MX$2.30, which will be 6.5% higher than last year's payment of MX$2.16 which covered the same period. This takes the dividend yield to 5.3%, which shareholders will be pleased with.

See our latest analysis for Bolsa Mexicana de Valores. de

Bolsa Mexicana de Valores. de's Payment Has Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Prior to this announcement, Bolsa Mexicana de Valores. de's dividend was comfortably covered by both cash flow and earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.

Earnings per share is forecast to rise by 15.6% over the next year. If recent patterns in the dividend continues, the payout ratio in 12 months could be 79% which is a bit high but can definitely be sustainable.

Bolsa Mexicana de Valores. de Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2013, the dividend has gone from MX$1.08 total annually to MX$2.16. This implies that the company grew its distributions at a yearly rate of about 7.2% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

The Dividend Has Growth Potential

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Bolsa Mexicana de Valores. de has impressed us by growing EPS at 6.4% per year over the past five years. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

Bolsa Mexicana de Valores. de Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for Bolsa Mexicana de Valores. de for free with public analyst estimates for the company. Is Bolsa Mexicana de Valores. de not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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