El Puerto de Liverpool. de (BMV:LIVEPOLC-1) Is Due To Pay A Dividend Of MX$1.18

El Puerto de Liverpool, S.A.B. de C.V.'s (BMV:LIVEPOLC-1) investors are due to receive a payment of MX$1.18 per share on 11th of October. This takes the annual payment to 2.1% of the current stock price, which is about average for the industry.

See our latest analysis for El Puerto de Liverpool. de

El Puerto de Liverpool. de's Earnings Easily Cover The Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Before making this announcement, El Puerto de Liverpool. de was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 21.1% over the next year. If the dividend continues on this path, the payout ratio could be 18% by next year, which we think can be pretty sustainable going forward.

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was MX$1.20 in 2014, and the most recent fiscal year payment was MX$2.95. This means that it has been growing its distributions at 9.4% per annum over that time. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. El Puerto de Liverpool. de might have put its house in order since then, but we remain cautious.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. El Puerto de Liverpool. de has impressed us by growing EPS at 12% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for El Puerto de Liverpool. de's prospects of growing its dividend payments in the future.

We Really Like El Puerto de Liverpool. de's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for El Puerto de Liverpool. de that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated 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.

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