Assessing the Upcoming Dividend and Historical Performance of FIBRA Macquarie (DBMBF, Financial)
FIBRA Macquarie (DBMBF) recently announced a dividend of $0.53 per share, payable on 2024-01-30, with the ex-dividend date set for 2024-01-26. 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 look into FIBRA Macquarie's dividend performance and assess its sustainability.
What Does FIBRA Macquarie Do?
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.
A Glimpse at FIBRA Macquarie's Dividend History
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.
Breaking Down FIBRA Macquarie's Dividend Yield and Growth
As of today, FIBRA Macquarie currently has a 12-month trailing dividend yield of 6.72% and a 12-month forward dividend yield of 6.87%. 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 10.34%.
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, FIBRA Macquarie's dividend payout ratio is 0.85, which 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 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each 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. 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 63.64% 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 54.70% per year on average, a rate that outperforms approximately 89.79% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 23.20%, which outperforms approximately 87.54% of global competitors, is also a strong indicator of its financial health and potential for sustained dividend growth.
Next Steps
In conclusion, FIBRA Macquarie's upcoming dividend payment, along with its historical dividend consistency, presents an attractive proposition for income-focused investors. However, the sustainability of these payments warrants a closer look, especially considering the dividend payout ratio and the company's profitability. While the payout ratio is relatively high, FIBRA Macquarie's strong profitability and growth metrics suggest a capacity to maintain, if not increase, dividends in the future. Investors should keep an eye on these factors when making decisions about FIBRA Macquarie's stock. Could FIBRA Macquarie be the cornerstone of your dividend portfolio? Assessing its financial health and dividend sustainability is key to answering that question.
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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.
