Grupo de Inversiones Suramericana SA's Dividend Analysis

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Exploring the Dividend Sustainability and Growth Prospects of GIVSY

Grupo de Inversiones Suramericana SA (GIVSY, Financial) recently announced a dividend of $0.19 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-04-18. 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 Grupo de Inversiones Suramericana SA's dividend performance and assess its sustainability.

What Does Grupo de Inversiones Suramericana SA Do?

Grupo de Inversiones Suramericana SA is a Latin American investment holding company with holdings in Colombian entities. Grupo Sura also holds stakes in companies throughout the Americas, including Chile, Mexico, Peru, Colombia, and Uruguay. The group's investment portfolio is mostly concentrated in the financial, pension, insurance, social security, and complimentary services industries. The company also holds smaller stakes in processed food, cement, and energy companies. Grupo Sura targets companies that emphasize innovation and offer complementary services across its portfolio holdings.

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A Glimpse at Grupo de Inversiones Suramericana SA's Dividend History

Grupo de Inversiones Suramericana SA has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

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Breaking Down Grupo de Inversiones Suramericana SA's Dividend Yield and Growth

As of today, Grupo de Inversiones Suramericana SA currently has a 12-month trailing dividend yield of 2.76% and a 12-month forward dividend yield of 3.16%. This suggests an expectation of increased dividend payments over the next 12 months.

Over the past three years, Grupo de Inversiones Suramericana SA's annual dividend growth rate was 30.00%. Extended to a five-year horizon, this rate decreased to 17.40% per year. And over the past decade, Grupo de Inversiones Suramericana SA's annual dividends per share growth rate stands at an impressive 10.60%.

Based on Grupo de Inversiones Suramericana SA's dividend yield and five-year growth rate, the 5-year yield on cost of Grupo de Inversiones Suramericana SA stock as of today is approximately 6.16%.

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, Grupo de Inversiones Suramericana SA's dividend payout ratio is 0.37.

Grupo de Inversiones Suramericana SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Grupo de Inversiones Suramericana SA's profitability 7 out of 10 as of 2023-12-31, 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. Grupo de Inversiones Suramericana SA'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 Grupo de Inversiones Suramericana SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Grupo de Inversiones Suramericana SA's revenue has increased by approximately 14.00% per year on average, a rate that outperforms approximately 74.52% 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, Grupo de Inversiones Suramericana SA's earnings increased by approximately 74.40% per year on average, a rate that outperforms approximately 91.63% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 11.60%, which outperforms approximately 68.46% of global competitors, suggests a healthy financial condition that can support ongoing dividend payments.

Engaging Conclusion

In conclusion, Grupo de Inversiones Suramericana SA's upcoming dividend, historical dividend consistency, and growth rates reflect a company committed to rewarding shareholders. The payout ratio and profitability rank indicate that the dividends are sustainable, while the growth metrics point towards a positive future outlook. Investors may consider these factors when evaluating Grupo de Inversiones Suramericana SA as a potential addition to their income-generating portfolio. Will Grupo de Inversiones Suramericana SA continue its trend of dividend growth, and how will it adapt to future economic challenges? These are questions value investors might ponder as they assess the company's long-term potential.

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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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.