Equity Analysis /
Mexico

Organizacion Soriana SAB de CV: Flash SORIANA: Will propose a dividend with a 2.8% yield

  • At its next Shareholder Meeting, to be held on April 29, it will propose a dividend distribution of $0.5556 per share

  • This dividend represents a yield of 2.8% over current prices

  • It comes at a time when its valuation is the most attractive in the sector, but without clear catalysts for a re-rating

Valentin III Mendoza Balderas
Valentin III Mendoza Balderas

Senior Equity Research Analyst, Consumer & Telecoms

Contributors
Marissa Garza Ostos
Juan Barbier
Banorte
15 April 2021
Published by

Soriana announced that at its next Annual Shareholder Meeting, to be held on April 29, it will propose a dividend distribution of MXN 0.5556 per share, equivalent to a total amount of MXN 1 billion and with which it will resume dividend payments since the one made in 2019. This dividend represents a yield of 2.8% over current prices.

Positive implication: This dividend, subject to approval, exceeds our expectations of continuing without distributions this year, and compares favorably to the last dividend paid of MXN 0.389 per share (+42.8%), supported by solid cash generation at the end of 2020. This shareholder remuneration comes at a time when the issuer's valuation is positioned as the most attractive in the Mexican retail sector, but without clear catalysts for a revaluation, which is why this news should be well received by the market.