GCC informed that at the Ordinary General Shareholders' Meeting, to be held on April 29, 2021, it will propose the cash dividend payment of MXN 1.0105 per share (+7.5% y/y), which is equivalent to a yield of 0.7% at current prices.
Neutral implication: The proposed dividend payment is virtually in line with our estimate (MXN 1.08e), therefore we believe it should not have any impact on the stock. We reiterate that the company's outlook is positive, supported by a solid demand expectation in the materials sector-which we will confirm when it releases its 1Q21 results on April 27-, in light of expected stronger economic growth in its main US market, with favorable implications for Mexico as well. In addition, the company's financial strength (it recently received an investment grade rating from S&P Global Ratings) positions it for continued growth through potential acquisitions. This confirms our positive outlook for GCC.