A Comprehensive Analysis of OMAB's Dividend Performance and Sustainability
Grupo Aeroportuario del Centro Norte SAB de CV (OMAB, Financial), a leading operator of airports in Mexico's central region, has recently declared a dividend of $0.58 per share, scheduled for payment on September 27, 2023. With the ex-dividend date slated for September 18, 2023, investors are keenly eyeing this forthcoming payout. This article will delve into the company's dividend history, yield, growth rates, and sustainability utilizing data from GuruFocus.
What Does Grupo Aeroportuario del Centro Norte SAB de CV Do?
Grupo Aeroportuario del Centro Norte primarily manages airports in Mexico's central region. The company's largest airport is located in Monterrey, catering to nearly half of its total passenger traffic. Additionally, the company oversees two hotels and an industrial park.
A Glimpse at Grupo Aeroportuario del Centro Norte SAB de CV's Dividend History
Since 2021, Grupo Aeroportuario del Centro Norte has maintained a consistent track record of quarterly dividend payments. The chart below illustrates the company's annual Dividends Per Share for a historical perspective on its dividend trends.
Breaking Down Grupo Aeroportuario del Centro Norte SAB de CV's Dividend Yield and Growth
As of now, Grupo Aeroportuario del Centro Norte boasts a 12-month trailing dividend yield of 3.92% and a 12-month forward dividend yield of 4.52%. This implies an anticipated increase in dividend payouts over the upcoming year. In the past three years, the company's annual dividend growth rate has been 13.20%.
The Sustainability Question: Payout Ratio and Profitability
Evaluating the dividend payout ratio is crucial to assess the sustainability of a company's dividend. This ratio indicates the portion of earnings distributed as dividends, with a lower ratio suggesting a considerable retention of earnings for future growth and downturns. As of March 31, 2023, Grupo Aeroportuario del Centro Norte's dividend payout ratio is 0.87, which might imply potential risks to the sustainability of its dividend.
Growth Metrics: The Future Outlook
Robust growth metrics are vital for the sustainability of dividends. Grupo Aeroportuario del Centro Norte's growth rank of 9 out of 10 suggests a promising growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model. Furthermore, the company's 3-year EPS growth rate and 5-year EBITDA growth rate underscore its potential for earnings growth, a critical factor for sustaining dividends.
Concluding Thoughts
While Grupo Aeroportuario del Centro Norte SAB de CV's consistent dividend payments, impressive growth rate, and robust profitability paint a promising picture, its high payout ratio raises questions about the sustainability of its dividend. Investors should keep a close eye on these metrics and the company's future performance to make informed investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
