Banco Macro SA's Dividend Analysis
Exploring the Upcoming Dividend and Historical Performance of Banco Macro SA
Banco Macro SA (NYSE:BMA) recently announced a dividend of $0.6 per share, payable on 2024-01-16, with the ex-dividend date set for 2024-01-05. 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 Macro SA's dividend performance and assess its sustainability.
What Does Banco Macro SA Do?
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Banco Macro SA is a financial institution and it provides standard banking products and services designed to suit individual needs. It has two categories of customers, retail customers, which include individuals and entrepreneurs, and corporate customers, which include small, medium, and large companies and corporations. In addition, it provides services to four provincial governments. It generates the majority of its revenue from Argentina.
A Glimpse at Banco Macro SA's Dividend History
Banco Macro SA has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Banco Macro SA's Dividend Yield and Growth
As of today, Banco Macro SA currently has a 12-month trailing dividend yield of 8.80% and a 12-month forward dividend yield of 10.96%. This suggests an expectation of increased dividend payments over the next 12 months.
Banco Macro SA's dividend yield of 8.80% is near a 10-year high and outperforms than 0.17 of global competitors in the Banks industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Banco Macro SA's annual dividend growth rate was 41.50%. Based on Banco Macro SA's dividend yield and five-year growth rate, the 5-year yield on cost of Banco Macro SA stock as of today is approximately 8.80%.
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 2023-09-30, Banco Macro SA's dividend payout ratio is 0.24.
Banco Macro SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco Macro SA's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Banco Macro 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 Banco Macro SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Banco Macro SA's revenue has increased by approximately 23.80% per year on average, a rate that outperforms approximately 92.94% 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 Macro SA's earnings increased by approximately -72.00% per year on average, a rate that outperforms approximately 0.23% of global competitors.
Next Steps
In conclusion, Banco Macro SA's upcoming dividend payment, strong dividend growth rate, prudent payout ratio, solid profitability, and robust growth metrics paint a promising picture for value investors focused on income. While the high dividend yield is attractive, it's important to consider the sustainability of such payouts in conjunction with the company's financial health and growth prospects. With Banco Macro SA's proven track record and future outlook, investors may find the company to be a compelling addition to their dividend-focused portfolios. For those seeking to discover more high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener to identify potential investments.
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.
