Assessing the Dividend Profile of PrologisProperty Mexico SA de CV
PrologisProperty Mexico SA de CV (FBBPF, Financial) recently announced a dividend of $0.61 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-30. 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 PrologisProperty Mexico SA de CV's dividend performance and assess its sustainability.
What Does PrologisProperty Mexico SA de CV Do?
PrologisProperty Mexico SA de CV, formerly FIBRA Prologis, is engaged in the acquisition, ownership, and leasing of industrial properties throughout Mexico. The company's real estate portfolio primarily comprises large warehouse buildings. Most of the square feet under Fibra Prologis' ownership is used for consumption-driven purposes, while a sizable percentage is also used for manufacturing. The company derives nearly all of its revenue as lease rental income from multinational firms. This income is fairly evenly split between its manufacturing-related facilities in Northern Mexico and consumption-related facilities located mainly in Central and Southern Mexico. In terms of total revenue, the majority of Fibra Prologis' customers are general retailers and third-party logistics firms.
A Glimpse at PrologisProperty Mexico SA de CV's Dividend History
PrologisProperty Mexico SA de CV 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 PrologisProperty Mexico SA de CV's Dividend Yield and Growth
As of today, PrologisProperty Mexico SA de CV currently has a 12-month trailing dividend yield of 3.08% and a 12-month forward dividend yield of 3.22%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, PrologisProperty Mexico SA de CV's annual dividend growth rate was 3.90%. Extended to a five-year horizon, this rate decreased to 0.70% per year. Based on PrologisProperty Mexico SA de CV's dividend yield and five-year growth rate, the 5-year yield on cost of PrologisProperty Mexico SA de CV stock as of today is approximately 3.19%.
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 2023-12-31, PrologisProperty Mexico SA de CV's dividend payout ratio is 0.18.
PrologisProperty Mexico SA de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PrologisProperty Mexico SA de CV's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. PrologisProperty Mexico SA de CV'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 PrologisProperty Mexico SA de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PrologisProperty Mexico SA de CV's revenue has increased by approximately -4.00% per year on average, a rate that underperforms approximately 71.94% 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, PrologisProperty Mexico SA de CV's earnings increased by approximately 46.90% per year on average, a rate that underperforms approximately 11.15% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 30.20%, which underperforms approximately 9.32% of global competitors.
Next Steps
With a history of consistent dividends, a reasonable payout ratio, and a solid profitability rank, PrologisProperty Mexico SA de CV appears to be a compelling choice for value investors interested in dividend income. However, the company's growth metrics present a mixed picture, with some areas of underperformance compared to global competitors. Investors should weigh these factors in their decision-making process and consider the future prospects of the industrial real estate sector in Mexico. PrologisProperty Mexico SA de CV's position within this sector and its ability to adapt to market changes will be critical in maintaining its dividend payments and achieving long-term growth.
For investors seeking to diversify their portfolio with high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to find stocks that match their investment criteria.
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.
