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.