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

Readers hoping to buy Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. 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. Therefore, if you purchase Grupo Aeroportuario del Sureste S. A. B. de C. V's shares on or after the 28th of May, you won't be eligible to receive the dividend, when it is paid on the 29th of May.

The company's upcoming dividend is Mex$50.00 a share, following on from the last 12 months, when the company distributed a total of Mex$20.93 per share to shareholders. Looking at the last 12 months of distributions, Grupo Aeroportuario del Sureste S. A. B. de C. V has a trailing yield of approximately 3.2% on its current stock price of Mex$659.40. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to check whether the dividend payments are covered, and if earnings are growing.

Our free stock report includes 1 warning sign investors should be aware of before investing in Grupo Aeroportuario del Sureste S. A. B. de C. V. Read for free now.

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 26% 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. Fortunately, it paid out only 31% of its free cash flow in the past year.

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.

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

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

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see Grupo Aeroportuario del Sureste S. A. B. de C. V has grown its earnings rapidly, up 21% a year for the past five years. Earnings per share have been growing very quickly, and the company is paying out a relatively low percentage of its profit and cash flow. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Grupo Aeroportuario del Sureste S. A. B. de C. V has increased its dividend at approximately 15% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Has Grupo Aeroportuario del Sureste S. A. B. de C. V got what it takes to maintain its dividend payments? It's great that Grupo Aeroportuario del Sureste S. A. B. de C. V is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. It's disappointing to see the dividend has been cut at least once in the past, but as things stand now, the low payout ratio suggests a conservative approach to dividends, which we like. It's a promising combination that should mark this company worthy of closer attention.

While it's tempting to invest in Grupo Aeroportuario del Sureste S. A. B. de C. V for the dividends alone, you should always be mindful of the risks involved. Every company has risks, and we've spotted 1 warning sign for Grupo Aeroportuario del Sureste S. A. B. de C. V you should know about.

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.

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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.