Equity Analysis /
Mexico

America Movil: Flash: Shareholder’s remuneration proposal of up to 4.0% return

  • America Movil announced that it will propose a cash dividend payment of MXN 0.44 per share to be paid on August 29

  • As well as an amount of MXN 26 billion to the share buyback (+4.0% vs. 2021) for the period April 2022 - April 2023

  • The dividend equates to a 2.1% yield, while the buyback fund, would represent 1.9% of Amx’s capitalization value

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Banorte
23 March 2022
Published by

America Movil announced that, at the shareholder’s meeting to be held in April, the Board of Directors will propose a cash dividend payment of MXN 0.44 per share (+10.0% y/y), to be paid on August 29 of this year, as well as an amount of MXN 26 billion to the share buyback (+4.0% vs. the authorized in 2021) for the period April 2022 - April 2023.

Positive implication: The proposed dividend equates to a 2.1% yield at current prices, while the buyback fund, if exercised fully, would represent up to 1.9% of Amx’s current capitalization value. We see as favorable the shareholder’s remuneration continuity, which in this case, could reach up to 4.0% of total return. As the company’s effort continues executing strategies to detonate value and strengthening the balance sheet, we highlight last month’s announcement of the 5G network launch, which would be supporting higher ARPU and data consumption going forward.