Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

It looks like Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) is about to go ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a 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. Accordingly, Grupo Aeroportuario del Sureste S. A. B. de C. V investors that purchase the stock on or after the 28th of May will not receive the dividend, which will be paid on the 29th of May.

The company's next dividend payment will be Mex$10.926 per share, on the back of last year when the company paid a total of Mex$19.93 to shareholders. Based on the last year's worth of payments, Grupo Aeroportuario del Sureste S. A. B. de C. V stock has a trailing yield of around 3.4% on the current share price of Mex$581.49. 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. We need to see whether the dividend is covered by earnings and if it's growing.

View 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. Grupo Aeroportuario del Sureste S. A. B. de C. V paid out a comfortable 29% of its profit last year. 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. It paid out more than half (51%) of its free cash flow in the past year, which is within an average range for most companies.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

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

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. For this reason, we're glad to see Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings per share have risen 16% per annum over the last five years. Grupo Aeroportuario del Sureste S. A. B. de C. V is paying out a bit over half its earnings, which suggests the company is striking a balance between reinvesting in growth, and paying dividends. Given the quick rate of earnings per share growth and current level of payout, there may be a chance of further dividend increases in the future.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Grupo Aeroportuario del Sureste S. A. B. de C. V has delivered 16% dividend growth per year on average over the past 10 years. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

To Sum It Up

Has Grupo Aeroportuario del Sureste S. A. B. de C. V got what it takes to maintain its dividend payments? Earnings per share have grown at a nice rate in recent times and over the last year, Grupo Aeroportuario del Sureste S. A. B. de C. V paid out less than half its earnings and a bit over half its free cash flow. 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.

In light of that, while Grupo Aeroportuario del Sureste S. A. B. de C. V has an appealing dividend, it's worth knowing the risks involved with this stock. In terms of investment risks, we've identified 1 warning sign with Grupo Aeroportuario del Sureste S. A. B. de C. V and understanding them should be part of your investment process.

A common investing mistake is buying the first interesting stock you see. Here you can find a full 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.