A Comprehensive Review of Dividend History, Yield, Growth, and Future Prospects
FIBRA Macquarie(DBMBF, Financial) recently announced a dividend of $0.53 per share, payable on 2023-09-28, with the ex-dividend date set for 2023-09-26. 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 deep dive into FIBRA Macquaries dividend performance and assess its sustainability.
Understanding FIBRA Macquarie's Business Model
FIBRA Macquarie is a real estate investment trust engaged in the acquisition, ownership, and leasing of real estate properties in Mexico. The company's real estate portfolio is comprised of industrial, retail, and office space. Industrial buildings represent the vast majority of FIBRA Macquarie's total number of properties, total square footage, and total revenue. Most of these industrial locations are used as manufacturing facilities and are located in Northern Mexico. FIBRA Macquarie derives nearly all of its revenue in the form of rental income from tenants. The company's major customers are automotive, electronics, and consumer products manufacturers, and others.
Historical Perspective on FIBRA Macquarie's Dividend Payments
FIBRA Macquarie has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting FIBRA Macquarie's Dividend Yield and Growth
As of today, FIBRA Macquarie currently has a 12-month trailing dividend yield of 7.67% and a 12-month forward dividend yield of 7.90%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, FIBRA Macquarie's annual dividend growth rate was -3.40%. Extended to a five-year horizon, this rate increased to 9.00% per year. Based on FIBRA Macquarie's dividend yield and five-year growth rate, the 5-year yield on cost of FIBRA Macquarie stock as of today is approximately 11.80%.
Evaluating Dividend Sustainability: 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, FIBRA Macquarie's dividend payout ratio is 1.50. This may suggest that the company's dividend may not be sustainable. FIBRA Macquarie's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks FIBRA Macquarie's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Projecting Future Dividend Growth: FIBRA Macquarie's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. FIBRA Macquarie's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and FIBRA Macquarie's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. FIBRA Macquarie's revenue has increased by approximately 4.00% per year on average, a rate that outperforms approximately 63.74% 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, FIBRA Macquarie's earnings increased by approximately 74.80% per year on average, a rate that outperforms approximately 91.98% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 25.20%, which outperforms approximately 85.52% of global competitors.
Wrapping Up: FIBRA Macquarie's Dividend Prospects
Considering FIBRA Macquarie's consistent dividend payments, its growth rate, the payout ratio, and profitability, the company appears to be a promising candidate for dividend investors. However, the relatively high payout ratio indicates a potential risk to dividend sustainability, necessitating a close watch on the company's future earnings and growth metrics. With robust growth rates and solid profitability, FIBRA Macquarie seems well-positioned for future dividend growth, provided it can manage its payout ratio effectively.
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