Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) Looks Interesting, And It's About To Pay A Dividend

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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. Meaning, you will need to purchase Grupo Aeroportuario del Sureste S. A. B. de C. V's shares before the 29th of May to receive the dividend, which will be paid on the 31st of May.

The company's next dividend payment will be Mex$9.93 per share, which looks like a nice increase on last year, when the company distributed a total of Mex$9.03 to shareholders. If you buy this business for its dividend, you should have an idea of whether Grupo Aeroportuario del Sureste S. A. B. de C. V's dividend is reliable and sustainable. As a result, readers should always check whether Grupo Aeroportuario del Sureste S. A. B. de C. V has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Grupo Aeroportuario del Sureste S. A. B. de C. V

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. Fortunately Grupo Aeroportuario del Sureste S. A. B. de C. V's payout ratio is modest, at just 29% of profit. A useful secondary check can be to evaluate whether Grupo Aeroportuario del Sureste S. A. B. de C. V generated enough free cash flow to afford its dividend. It distributed 39% of its free cash flow as dividends, a comfortable payout level for most companies.

It's positive to see that Grupo Aeroportuario del Sureste S. A. B. de C. V'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.

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 decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings per share have been growing at 12% a year for the past five years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Grupo Aeroportuario del Sureste S. A. B. de C. V has lifted its dividend by approximately 8.5% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

Final Takeaway

Should investors buy Grupo Aeroportuario del Sureste S. A. B. de C. V for the upcoming dividend? Grupo Aeroportuario del Sureste S. A. B. de C. V has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. There's a lot to like about Grupo Aeroportuario del Sureste S. A. B. de C. V, and we would prioritise taking a closer look at it.

Ever wonder what the future holds for Grupo Aeroportuario del Sureste S. A. B. de C. V? See what the 15 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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.