Assessing the Upcoming Dividend Payment and Company's Financial Health
Cementos Argos S.A. (CMTOY, Financial) recently announced a dividend of $0.09 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-12-01. 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 Cementos Argos S.A.'s dividend performance and assess its sustainability.
What Does Cementos Argos S.A. Do?
Cementos Argos S.A. is a leading player in the cement and concrete industry, holding a dominant position in Colombia and being the second-largest producer in the United States. The company's operations encompass the production and distribution of cement and concrete, as well as the exploration and mining of minerals essential for these processes. With a focus on innovation and sustainability, Cementos Argos S.A. is well-positioned to meet the construction industry's demands.
A Glimpse at Cementos Argos S.A.'s Dividend History
Cementos Argos S.A. has upheld a commendable track record of consistent dividend payments since 2008, reflecting its commitment to shareholder returns. The dividends are dispensed quarterly, showcasing the company's financial stability and reliable cash flows.
Below is a chart that illustrates the annual Dividends Per Share to track historical trends and assess the growth and consistency of Cementos Argos S.A.'s dividend distributions over time.
Breaking Down Cementos Argos S.A.'s Dividend Yield and Growth
The current 12-month trailing dividend yield of Cementos Argos S.A. stands at an attractive 5.81%, with the forward dividend yield estimated at 6.11%. This forward-looking yield suggests an anticipation of increased dividend payments in the near future.
However, examining the past three to ten years, we observe a mixed picture of Cementos Argos S.A.'s dividend growth rates. While the three-year annual dividend growth rate has declined by -4.50%, and the five-year rate has seen a decrease to -5.10% per year, the longer-term ten-year growth rate reflects an increase of 2.40% per year.
Considering these figures, the 5-year yield on cost for Cementos Argos S.A. is approximately 4.47%, which could be an appealing metric for long-term investors.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a crucial indicator of dividend sustainability. Cementos Argos S.A. has a payout ratio of 0.64 as of 2023-09-30, suggesting that the company maintains a balance between distributing earnings as dividends and retaining income for future growth.
Further reinforcing the company's financial health is its profitability rank. With a score of 8 out of 10, Cementos Argos S.A. demonstrates robust profitability, outperforming many of its industry peers. This is supported by its history of net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit strong growth prospects. Cementos Argos S.A.'s growth rank of 8 out of 10 indicates a promising growth trajectory when compared to its competitors.
Revenue growth is essential for any business, and Cementos Argos S.A.'s revenue per share and 3-year revenue growth rate reflect a solid revenue model, with an average annual increase of 7.00%. This growth rate is more impressive than that of approximately 57.3% of global competitors.
Moreover, the company's 3-year EPS growth rate is another testament to its ability to enhance earnings, crucial for maintaining dividends. Over the past three years, Cementos Argos S.A.'s earnings have surged by an average of 83.70% per year, surpassing approximately 93.17% of global competitors.
Engaging Conclusion
In conclusion, Cementos Argos S.A.'s upcoming dividend, historical payouts, and financial indicators paint a comprehensive picture for value investors. The company's dividend yield, growth rates, payout ratio, and profitability rank suggest a balance between rewarding shareholders and investing in future growth. Additionally, robust growth metrics indicate that Cementos Argos S.A. is well-positioned to sustain its dividend payments. With these insights, investors can make more informed decisions about the potential of Cementos Argos S.A. as a dividend-paying stock. For those seeking to expand their portfolio with high-dividend yield stocks, the High Dividend Yield Screener available to GuruFocus Premium users can be an invaluable tool.
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.
