FMX - FEMSA Offers Underrated Quality Growth For Patient Investors
2024-04-03 13:56:01 ET
Summary
- FEMSA's shares have come under pressure due to unexpected changes in the C-suite and disappointment about the pace of capital returns to shareholders.
- The company has announced a 20% hike in the regular dividend and an extraordinary dividend for the next four quarters, doubling the dividend yield.
- FEMSA has underrated growth potential, not only with its core Oxxo brand in Mexico but also with international expansion and newer store concepts like Bara.
Wall Street doesn't give companies a chance to take victory laps; it is very much a "what have you done for me lately?" or "what are you doing for me tomorrow?" sort of place. To that end, while FEMSA ( FMX ) management has done a good job of executing on its restructuring and capital return initiatives, the shares have come under some pressure from unexpected changes in the C-suite, some near-term pressures on margin, and arguably some disappointment about the pace of capital returns to shareholders....
FEMSA Offers Underrated Quality Growth For Patient Investors