Corporación Inmobiliaria Vesta, S.A.B. de C.V. (BMV:VESTA) Stock Goes Ex-Dividend In Just Four Days

Readers hoping to buy Corporación Inmobiliaria Vesta, S.A.B. de C.V. (BMV:VESTA) 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 of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Accordingly, Corporación Inmobiliaria Vesta. de investors that purchase the stock on or after the 14th of July will not receive the dividend, which will be paid on the 15th of July.

The company's upcoming dividend is US$0.0203418 a share, following on from the last 12 months, when the company distributed a total of US$0.075 per share to shareholders. Based on the last year's worth of payments, Corporación Inmobiliaria Vesta. de stock has a trailing yield of around 2.8% on the current share price of Mex$49.83. If you buy this business for its dividend, you should have an idea of whether Corporación Inmobiliaria Vesta. de's dividend is reliable and sustainable. As a result, readers should always check whether Corporación Inmobiliaria Vesta. de has been able to grow its dividends, or if the dividend might be cut.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Corporación Inmobiliaria Vesta. de paid out 57% of its earnings to investors last year, a normal payout level for most businesses. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Fortunately, it paid out only 42% of its free cash flow in the past year.

It's positive to see that Corporación Inmobiliaria Vesta. de's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Check out our latest analysis for Corporación Inmobiliaria Vesta. de

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

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're discomforted by Corporación Inmobiliaria Vesta. de's 10% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Corporación Inmobiliaria Vesta. de has delivered an average of 8.2% per year annual increase in its dividend, based on the past 10 years of dividend payments. Growing the dividend payout ratio while earnings are declining can deliver nice returns for a while, but it's always worth checking for when the company can't increase the payout ratio any more - because then the music stops.

The Bottom Line

Has Corporación Inmobiliaria Vesta. de got what it takes to maintain its dividend payments? We're not enthused by the declining earnings per share, although at least the company's payout ratio is within a reasonable range, meaning it may not be at imminent risk of a dividend cut. All things considered, we are not particularly enthused about Corporación Inmobiliaria Vesta. de from a dividend perspective.

If you want to look further into Corporación Inmobiliaria Vesta. de, it's worth knowing the risks this business faces. Our analysis shows 2 warning signs for Corporación Inmobiliaria Vesta. de and you should be aware of them before buying any shares.

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.