Assessing the Dividend Profile of Promotora Y Operadora de Infraestructura SAB de CV
Promotora Y Operadora de Infraestructura SAB de CV (PYYIF, Financial) recently announced a dividend of $2.66 per share, payable on 2023-12-20, with the ex-dividend date set for 2023-12-18. 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 Promotora Y Operadora de Infraestructura SAB de CV's dividend performance and assess its sustainability.
What Does Promotora Y Operadora de Infraestructura SAB de CV Do?
Promotora Y Operadora de Infraestructura SAB de CV, or Pinfra, develops and constructs infrastructure projects in Mexico. It completes highways, ports, railways, sewer systems, and other projects related to industrial development. The company holds various concessions from the government to build and then operate structures for several years. The concessions can generate stable revenue, and enhance connectivity within communities. Pinfra has three business segments: concession, construction, and plants. The construction division primarily provides services to its concessions, but has the capability to partner with third parties. Many concessions are fully operational, and the company supplies maintenance and operational support to adhere to requirements.
A Glimpse at Promotora Y Operadora de Infraestructura SAB de CV's Dividend History
Promotora Y Operadora de Infraestructura 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 Promotora Y Operadora de Infraestructura SAB de CV's Dividend Yield and Growth
As of today, Promotora Y Operadora de Infraestructura SAB de CV currently has a 12-month trailing dividend yield of 7.82% and a 12-month forward dividend yield of 10.62%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Promotora Y Operadora de Infraestructura SAB de CV's annual dividend growth rate was 18.50%. Extended to a five-year horizon, this rate increased to 22.90% per year. Based on Promotora Y Operadora de Infraestructura SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Promotora Y Operadora de Infraestructura SAB de CV stock as of today is approximately 21.93%.
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 2023-09-30, Promotora Y Operadora de Infraestructura SAB de CV's dividend payout ratio is 0.42. Promotora Y Operadora de Infraestructura SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Promotora Y Operadora de Infraestructura SAB de CV's profitability 9 out of 10 as of 2023-09-30, 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. Promotora Y Operadora de Infraestructura 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 Promotora Y Operadora de Infraestructura SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Promotora Y Operadora de Infraestructura SAB de CV's revenue has increased by approximately 6.00% per year on average, a rate that outperforms approximately 58.24% 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, Promotora Y Operadora de Infraestructura SAB de CV's earnings increased by approximately 5.00% per year on average, a rate that outperforms approximately 49.63% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.70%, which outperforms approximately 42.59% of global competitors.
Conclusion: Evaluating Promotora Y Operadora de Infraestructura SAB de CV's Dividend Prospects
In conclusion, Promotora Y Operadora de Infraestructura SAB de CV's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics paint a comprehensive picture for value investors. The company's strong dividend history and growth, coupled with a sustainable payout ratio and high profitability rank, suggest that it is positioned well to continue rewarding shareholders. The positive growth trajectory and revenue trends further support the possibility of sustained dividends. As investors consider the future prospects of their portfolios, they may find Promotora Y Operadora de Infraestructura SAB de CV to be an appealing option for both income and growth. GuruFocus Premium users can screen for high-dividend yield stocks using 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.
