Grupo Aval Acciones y Valores SA : AVAL-US: Dividend Analysis : December 29th, 2017 (record date) : By the numbers : January 1, 2018

Our analysis is based on comparing Grupo Aval Acciones y Valores SA with the following peers – Citigroup Inc, Standard Chartered PLC, Bank of New York Mellon Corporation and Royal Bank of Scotland Group plc (C-US, SCBFF-US, BK-US and RBSPF-US).

Grupo Aval Acciones y Valores SA’s dividend yield is 4.71 percent and its dividend payout is 63.48 percent. This compares to a peer median dividend yield of 1.60 percent and a payout level of 15.41 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), AVAL-US paid a low quality dividend, which represents a yield of 4.71% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 6.55x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), AVAL-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 7.52x), investing cash flow (coverage of -12.00x), issuance cash flow (coverage of 6.68x) and twelve-month prior cash (coverage of 17.59x), for a total dividend coverage of 18.21x.

AVAL-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.61x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) N/A N/A 15.69 20.66 15.5 4.71
Dividend Payout (%) N/A N/A 22.35 65.21 66.95 63.48

A complete list of metrics and analysis is available on the company page.

Company Profile

Grupo Aval Acciones y Valores SA engages in the provision of banking and investment business. It operates through the following segments: Banco de Bogota, Banco de Occidente, Banco AV Villas, Banco Popular, and Corficolombiana. All of the banks and Corficolombiana provide services related to banking activity in Colombia and others countries in commercial, consumer, as well as mortgage housing, and microcredit banking. The Corficolombiana segment also provides management of an equity portfolio. The company was founded by Luis Carlos Sarmiento Angulo on January 7, 1994 and is headquartered in Bogotá, Colombia.

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