There's A Lot To Like About Gentera. de's (BMV:GENTERA) Upcoming Mex$1.040342 Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Gentera, S.A.B. de C.V. (BMV:GENTERA) is about to trade ex-dividend in the next 3 days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Therefore, if you purchase Gentera. de's shares on or after the 12th of November, you won't be eligible to receive the dividend, when it is paid on the 13th of November.
The company's next dividend payment will be Mex$1.040342 per share, and in the last 12 months, the company paid a total of Mex$1.52 per share. Based on the last year's worth of payments, Gentera. de has a trailing yield of 4.1% on the current stock price of Mex$37.45. If you buy this business for its dividend, you should have an idea of whether Gentera. de's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Gentera. de paid out a comfortable 30% of its profit last year.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Check out our latest analysis for Gentera. de
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Gentera. de has grown its earnings rapidly, up 25% a year for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, Gentera. de has lifted its dividend by approximately 7.0% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
To Sum It Up
Has Gentera. de got what it takes to maintain its dividend payments? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. In summary, Gentera. de appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
In light of that, while Gentera. de has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Gentera. de and you should be aware of it before buying any shares.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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