Understanding the Dividend Prospects of Wal - Mart de Mexico SAB de CV
Wal - Mart de Mexico SAB de CV (WMMVY, Financial) recently announced a dividend of $0.56 per share, payable on 2023-12-18, with the ex-dividend date set for 2023-12-04. 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 Wal - Mart de Mexico SAB de CV's dividend performance and assess its sustainability.
What Does Wal - Mart de Mexico SAB de CV Do?
Wal - Mart de Mexico SAB de CV is the owner and operator of Wal-Mart branded self-service stores in Mexico and Central America. As a subsidiary of Wal-Mart Stores Incorporated, based in the United States, it generates most of its revenue in Mexico, with a smaller proportion coming from Central America. The company's operations encompass a variety of formats including discount stores, hypermarkets, supermarkets, wholesale stores, and pharmacies. Additionally, Wal - Mart de Mexico SAB de CV engages in the import and sale of goods, property development, and real estate management activities.
A Glimpse at Wal - Mart de Mexico SAB de CV's Dividend History
Wal - Mart de Mexico SAB de CV has maintained a consistent dividend payment record since 2001, distributing dividends bi-annually. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Wal - Mart de Mexico SAB de CV's Dividend Yield and Growth
Wal - Mart de Mexico SAB de CV currently has a 12-month trailing dividend yield of 3.57% and a 12-month forward dividend yield of 4.99%. This suggests an expectation of increased dividend payments over the next 12 months. The company's dividend yield is near a 10-year high and outperforms 70.15% of global competitors in the Retail - Defensive industry, positioning it as an attractive proposition for income investors.
Over the past three years, Wal - Mart de Mexico SAB de CV's annual dividend growth rate was 12.10%, which decreased to 11.30% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at an impressive 10.10%. Consequently, the 5-year yield on cost for Wal - Mart de Mexico SAB de CV stock is approximately 6.10%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Wal - Mart de Mexico SAB de CV's dividend can be gauged by its dividend payout ratio. With a ratio of 0.83 as of 2023-09-30, there may be concerns about the sustainability of the company's dividend. The profitability rank, however, offers a more optimistic perspective. With a rank of 9 out of 10, the company's profitability prospects look good. Wal - Mart de Mexico SAB de CV has also reported positive net income each year over the past decade, further reinforcing its strong profitability.
Growth Metrics: The Future Outlook
Wal - Mart de Mexico SAB de CV's growth rank of 9 out of 10 indicates a positive growth trajectory relative to competitors. The company's robust revenue model is evidenced by an average annual increase of 8.20% in revenue per share over the past three years, outperforming 62.85% of global competitors. Additionally, the company's 3-year EPS growth rate of 8.90% per year and 5-year EBITDA growth rate of 7.40% further underscore its ability to sustain dividends in the long term.
Next Steps
In conclusion, Wal - Mart de Mexico SAB de CV's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture for investors. While the payout ratio may raise questions about dividend sustainability, the company's strong profitability and growth metrics provide reassurance. Investors seeking high-dividend yield stocks can utilize tools like the GuruFocus High Dividend Yield Screener to explore similar investment opportunities.
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.
