An In-depth Look into Grupo Financiero Banorte SAB de CV's Dividend Performance and Sustainability
Grupo Financiero Banorte SAB de CV (GBOOY, Financial) recently announced a dividend of $1.52 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-19. 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 Financiero Banorte SAB de CVs dividend performance and assess its sustainability.
What Does Grupo Financiero Banorte SAB de CV Do?
Grupo Financiero Banorte SAB de CV is a Mexican financial services company. The company offers a wide variety of products and services including banking services, brokerage, wholesale banking, leasing, factoring, insurance, pensions, and retirement savings. It operates locally in Mexico.
A Glimpse at Grupo Financiero Banorte SAB de CV's Dividend History
Grupo Financiero Banorte 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 Financiero Banorte SAB de CV's Dividend Yield and Growth
As of today, Grupo Financiero Banorte SAB de CV currently has a 12-month trailing dividend yield of 8.76% and a 12-month forward dividend yield of 8.88%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Grupo Financiero Banorte SAB de CV's annual dividend growth rate was 29.00%.
Based on Grupo Financiero Banorte SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Grupo Financiero Banorte SAB de CV stock as of today is approximately 8.76%.
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 2023-06-30, Grupo Financiero Banorte SAB de CV's dividend payout ratio is 0.80. This may suggest that the company's dividend may not be sustainable.
Grupo Financiero Banorte SAB de CV's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Grupo Financiero Banorte SAB de CV's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. 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 Financiero Banorte SAB de CV's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Grupo Financiero Banorte SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Grupo Financiero Banorte SAB de CV's revenue has increased by approximately 9.10% per year on average, a rate that outperforms approximately 64.49% 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 Financiero Banorte SAB de CV's earnings increased by approximately 8.00% per year on average, a rate that outperforms approximately 48.48% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.60%, outperforms approximately 53.91% of global competitors.
Next Steps
Given Grupo Financiero Banorte SAB de CV's consistent dividend payments, robust dividend growth rate, and fair payout ratio, the company presents a compelling case for dividend-focused investors. However, its payout ratio suggests that investors should monitor the company's profitability and growth metrics closely to ensure the sustainability of future dividends.
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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.
