Four Days Left To Buy Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA) Before The Ex-Dividend Date

Readers hoping to buy Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Bolsa Mexicana de Valores. de's shares on or after the 9th of May, you won't be eligible to receive the dividend, when it is paid on the 12th of May.

The company's next dividend payment will be Mex$2.05 per share, and in the last 12 months, the company paid a total of Mex$2.12 per share. Based on the last year's worth of payments, Bolsa Mexicana de Valores. de stock has a trailing yield of around 5.1% on the current share price of Mex$41.86. If you buy this business for its dividend, you should have an idea of whether Bolsa Mexicana de Valores. de's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Its dividend payout ratio is 80% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be concerned if earnings began to decline.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

See our latest analysis for Bolsa Mexicana de Valores. de

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

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Bolsa Mexicana de Valores. de, with earnings per share up 6.1% on average over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Bolsa Mexicana de Valores. de has lifted its dividend by approximately 8.3% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

To Sum It Up

Is Bolsa Mexicana de Valores. de worth buying for its dividend? Bolsa Mexicana de Valores. de has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We think there are likely better opportunities out there.

Ever wonder what the future holds for Bolsa Mexicana de Valores. de? See what the six analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.