Nasdaq
华尔街日报It Might Not Be A Great Idea To Buy Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) For Its Next Dividend
Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) stock is about to trade ex-dividend in 4 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. Thus, you can purchase Grupo Rotoplas. de's shares before the 19th of December in order to receive the dividend, which the company will pay on the 22nd of December.
The company's upcoming dividend is Mex$0.125 a share, following on from the last 12 months, when the company distributed a total of Mex$0.25 per share to shareholders. Based on the last year's worth of payments, Grupo Rotoplas. de stock has a trailing yield of around 2.0% on the current share price of Mex$12.44. If you buy this business for its dividend, you should have an idea of whether Grupo Rotoplas. de's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Grupo Rotoplas. de paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.
See our latest analysis for Grupo Rotoplas. de
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Grupo Rotoplas. de was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Grupo Rotoplas. de's dividend payments are broadly unchanged compared to where they were 10 years ago. If a company's dividend stays flat while earnings are in decline, this is typically a sign that it is paying out a larger percentage of its earnings. This can become unsustainable if earnings fall far enough.
Get our latest analysis on Grupo Rotoplas. de's balance sheet health here.
The Bottom Line
From a dividend perspective, should investors buy or avoid Grupo Rotoplas. de? All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now.
So if you're still interested in Grupo Rotoplas. de despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For instance, we've identified 2 warning signs for Grupo Rotoplas. de (1 is potentially serious) you should be aware of.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.