Coca-Cola FEMSA plans dividend hike, backed by robust earnings

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According to InvestingPro data, the company’s market cap stands at 14.62B USD, while the P/E ratio is at 1.31, indicating a low price-to-earnings ratio relative to near-term earnings growth, a fact highlighted by InvestingPro Tips. The gross profit for LTM2023.Q2 is reported to be 6071.49M USD, with a gross profit margin of 43.9%, demonstrating the company’s profitability and financial health.

The company’s stable forecasted payout ratio stands at 2.5%, bolstered by an anticipated 25.2% EPS growth in the coming year. This planned dividend increase underscores Coca-Cola FEMSA’s consistent track record in paying dividends since 2013, growing them at an annual rate of 7.2%.

Notably, the company has been able to maintain its dividend payments for 20 consecutive years, as per InvestingPro Tips, which is a testament to its financial stability and commitment to shareholders. Also, the company has consistently increased its earnings per share, a key factor contributing to its ability to sustain and increase dividends.

Over the past five years, Coca-Cola FEMSA has demonstrated a strong performance with a robust annual EPS growth rate of 33%. This performance has been instrumental in supporting the company’s dividend strategy, providing shareholders with consistent returns while also enabling substantial reinvestment into the business.

InvestingPro data also shows a revenue growth of 12.38% for LTM2023.Q2, although the growth has been slowing down recently. Despite the slowdown, the company remains a prominent player in the beverages industry, as pointed out by InvestingPro Tips.

For more insights and tips like these, consider subscribing to InvestingPro, which offers additional tips and real-time metrics for companies like Coca-Cola FEMSA. Visit InvestingPro for more information.

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