Assessing the Upcoming Dividend Payout and Historical Performance
Grupo Bimbo SAB de CV (GRBMF, Financial) recently announced a dividend of $0.94 per share, payable on 2024-05-14, with the ex-dividend date set for 2024-05-10. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Grupo Bimbo SAB de CV's dividend performance and assess its sustainability.
What Does Grupo Bimbo SAB de CV Do?
Grupo Bimbo SAB de CV is an international baking-products manufacturer. The company operates in over 22 countries throughout the Americas, Europe, and Asia. The firm's key product categories are packed bread, sweet baked goods, salty snacks, cookies, solutions (tortillas, pitas, wraps), prepacked foods, confectionery, and others. The key brands are Bimbo, Ideal, Ricolino, Oroweat, Arnold, Thomas, and Sara Lee. Grupo Bimbo has a large direct distribution network that allows the company to distribute products from its own plants (based in Uruguay, Rio de Janeiro, China, Santiago de Chile, and Argentina) to sales centers and warehouses.
A Glimpse at Grupo Bimbo SAB de CV's Dividend History
Grupo Bimbo SAB de CV has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Grupo Bimbo SAB de CV's Dividend Yield and Growth
As of today, Grupo Bimbo SAB de CV currently has a 12-month trailing dividend yield of 1.03% and a 12-month forward dividend yield of 1.29%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Grupo Bimbo SAB de CV's annual dividend growth rate was 42.40%. Extended to a five-year horizon, this rate decreased to 36.00% per year. Based on Grupo Bimbo SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Grupo Bimbo SAB de CV stock as of today is approximately 4.79%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Grupo Bimbo SAB de CV's dividend payout ratio is 0.30. Grupo Bimbo SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Grupo Bimbo SAB de CV's profitability 9 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Grupo Bimbo SAB de CV's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Grupo Bimbo SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Grupo Bimbo SAB de CV's revenue has increased by approximately 12.60% per year on average, a rate that outperforms than approximately 67.74% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Grupo Bimbo SAB de CV's earnings increased by approximately 54.00% per year on average, a rate that outperforms than approximately 86.53% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 31.90%, which outperforms than approximately 85.51% of global competitors.
Next Steps
With a strong dividend history, robust profitability, and promising growth metrics, Grupo Bimbo SAB de CV stands as a potentially lucrative option for investors seeking stable dividend income. As the company prepares for its next dividend payout, investors should consider the sustainability of its financial health and growth trajectory. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
