Inmobiliaria del Sur, S.A.’s (BME:ISUR) investors are set to receive a dividend payment of €0.1215 per share on July 1st, resulting in a dividend yield of 3.9%. While this yield may be lower compared to other companies in the industry, it is important to note that the company’s dividend has been comfortably covered by both cash flow and earnings.
With a forecasted 156.5% increase in EPS over the next year, the payout ratio could potentially be sustainable at 17% by the following year. However, it is worth mentioning that Inmobiliaria del Sur has cut its dividend at least once in the last 10 years, despite experiencing rapid growth in distributions during that period.
The company’s earnings per share has remained relatively flat over the past five years, indicating that dividend growth may not be consistent in the future. While the dividend has historically been at reasonable levels, investors should be cautious of potential fluctuations in the payout ratio.
Overall, Inmobiliaria del Sur may have the ability to make consistent dividend payments in the future, but investors should be aware of the company’s history of dividend volatility. It is important to consider a range of factors beyond dividend payments when analyzing a company, such as valuation, risks, and financial health.