El Puerto de Liverpool SAB de CV's Dividend Analysis

Exploring the Dividend Performance and Sustainability of El Puerto de Liverpool SAB de CV

El Puerto de Liverpool SAB de CV (ELPQF) recently announced a dividend of $2.95 per share, payable on a future date not yet specified, with the ex-dividend date set for 2024-05-22. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis utilizes data from GuruFocus to evaluate the dividend performance of El Puerto de Liverpool SAB de CV and assess its sustainability.

What Does El Puerto de Liverpool SAB de CV Do?

El Puerto de Liverpool SAB de CV operates in the retail sector across Mexico through three primary business segments: Liverpool, Suburbia, and real estate. The Liverpool segment, which includes Liverpool stores and boutiques, offers a range of products such as clothing, home goods, furniture, and cosmetics, generating the majority of the company's revenue, predominantly from Mexico City and surrounding areas. The Suburbia segment encompasses stores selling consumer products under its brands, while the real estate segment involves leasing commercial spaces in its Galerias shopping malls.

El Puerto de Liverpool SAB de CV's Dividend Analysis
El Puerto de Liverpool SAB de CV's Dividend Analysis

A Glimpse at El Puerto de Liverpool SAB de CV's Dividend History

El Puerto de Liverpool SAB de CV has maintained a consistent dividend payment record since 2022, distributing dividends annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.

El Puerto de Liverpool SAB de CV's Dividend Analysis
El Puerto de Liverpool SAB de CV's Dividend Analysis

Breaking Down El Puerto de Liverpool SAB de CV's Dividend Yield and Growth

Currently, El Puerto de Liverpool SAB de CV boasts a 12-month trailing dividend yield of 1.71% and a forward dividend yield of 3.76%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 42.60%, which decreased to 23.50% per year over a five-year period. The 5-year yield on cost for El Puerto de Liverpool SAB de CV stock is approximately 4.91% as of today.

El Puerto de Liverpool SAB de CV's Dividend Analysis
El Puerto de Liverpool SAB de CV's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

To evaluate the sustainability of the dividend, it's essential to consider the company's payout ratio. El Puerto de Liverpool SAB de CV's dividend payout ratio as of 2024-03-31 is 0.17, suggesting that the company retains a substantial part of its earnings for future growth and to buffer against potential downturns. The company's profitability rank is 9 out of 10, indicating robust earnings capability relative to its peers. This is supported by a decade of consistent positive net income.

Growth Metrics: The Future Outlook

For sustainable dividends, robust growth metrics are critical. El Puerto de Liverpool SAB de CV's growth rank of 9 suggests a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate indicate a solid revenue model, with revenue growing by approximately 19.10% per year, outperforming 80.23% of global competitors. Similarly, its 3-year EPS growth rate and 5-year EBITDA growth rate further solidify its capability to sustain dividends long-term.

In conclusion, El Puerto de Liverpool SAB de CV's consistent dividend payments, robust growth rates, and strong payout ratio and profitability metrics paint a promising picture for current and prospective investors. With these factors in mind, could El Puerto de Liverpool SAB de CV be your next dividend stock addition? Explore further with GuruFocus Premium and our High Dividend Yield Screener.

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.

This article first appeared on GuruFocus.