Banco Latinoamericano de Comercio Exterior SA's Dividend Analysis
A Comprehensive Look at BLX's Dividend Performance and Sustainability
Banco Latinoamericano de Comercio Exterior SA (NYSE:BLX) recently announced a dividend of $0.25 per share, payable on 2023-11-16, with the ex-dividend date set for 2023-10-27. 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 Banco Latinoamericano de Comercio Exterior SA's dividend performance and assess its sustainability.
What Does Banco Latinoamericano de Comercio Exterior SA Do?
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Banco Latinoamericano de Comercio Exterior SA provides financial solutions to financial institutions, companies and investors doing business in Latin America, supporting trade and regional integration across the region. The Bank provides foreign trade solutions to a select client base of premier Latin-American financial institutions and corporations and has developed a network of correspondent banking institutions with access to the international capital markets. It has two business segments the Commercial Business Segment and the Treasury Business Segment.
A Glimpse at Banco Latinoamericano de Comercio Exterior SA's Dividend History
Banco Latinoamericano de Comercio Exterior SA has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Banco Latinoamericano de Comercio Exterior SA's Dividend Yield and Growth
As of today, Banco Latinoamericano de Comercio Exterior SA currently has a 12-month trailing dividend yield of 4.64% and a 12-month forward dividend yield of 4.64%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Banco Latinoamericano de Comercio Exterior SA's annual dividend growth rate was -13.40%. Extended to a five-year horizon, this rate increased to -10.20% per year. And over the past decade, Banco Latinoamericano de Comercio Exterior SA's annual dividends per share growth rate stands at -1.50%.
Based on Banco Latinoamericano de Comercio Exterior SA's dividend yield and five-year growth rate, the 5-year yield on cost of Banco Latinoamericano de Comercio Exterior SA stock as of today is approximately 2.71%.
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 2023-06-30, Banco Latinoamericano de Comercio Exterior SA's dividend payout ratio is 0.28.
Banco Latinoamericano de Comercio Exterior SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco Latinoamericano de Comercio Exterior SA's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. 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. Banco Latinoamericano de Comercio Exterior SA's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Banco Latinoamericano de Comercio Exterior SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Banco Latinoamericano de Comercio Exterior SA's revenue has increased by approximately 8.40% per year on average, a rate that outperforms approximately 61.6% 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, Banco Latinoamericano de Comercio Exterior SA's earnings increased by approximately 5.40% per year on average, a rate that outperforms approximately 40.08% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 18.60%, outperforms approximately 78.42% of global competitors.
Conclusion
In conclusion, Banco Latinoamericano de Comercio Exterior SA's consistent dividend payments, coupled with its fair profitability and growth metrics, make it an attractive option for dividend investors. However, the negative dividend growth rate over the past three, five, and ten years warrants caution. Investors should closely monitor the company's future earnings and payout ratio to ensure the sustainability of its dividend payments.
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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.
This article first appeared on GuruFocus.
