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Our analysis is based on comparing Cia Cervecerias Unidas SA with the following peers – Boston Beer Company, Inc. Class A, Anheuser-Busch InBev SA/NV Sponsored ADR, Molson Coors Brewing Company Class A, Constellation Brands, Inc. Class B, Kirin Holdings Company, Limited Sponsored ADR, Embotelladora Andina S.A. Sponsored ADR Pfd Class B, Vina Concha Y Toro S.A. Sponsored ADR and Diageo plc Sponsored ADR (SAM-US, BUD-US, TAP.A-US, STZ.B-US, KNBWY-US, AKO.B-US, VCO-US and DEO-US).

Cia Cervecerias Unidas SA’s dividend yield is 1.20 percent and its dividend payout is 33.71 percent. This compares to a peer average dividend yield of 1.81 percent and a payout level of 22.88 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 33 out of a possible score of 100, points to unsustainability as well.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to December 31, 2016), CCU-US paid a low quality dividend, which represents a yield of 1.20% 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 1 was medium quality and 4 were low quality.
  • The ending cash balance, with a dividend coverage of 2.04x, provides a moderate 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 December 31, 2016), CCU-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 2.72x), investing cash flow (coverage of -2.49x), issuance cash flow (coverage of -0.09x) and twelve-month prior cash (coverage of 2.79x), for a total dividend coverage of 3.04x.

CCU-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.05x).

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 (%) 2.67 2.87 3.32 2.51 2.68 1.2
Dividend Payout (%) 32.18 26.36 28.57 28.85 33.71 33.71

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

Company Profile

Cia Cervecerias Unidas SA is a multi-category beverage company. It engages in beer, wine, soft drink, mineral water, nectars, pisco, and confectionary businesses in Chile. The company operates through three segments: Chile, Rio de la Plata and Wine. The Chile segment commercializes beers, non alcoholic beverages and spirits in the Chilean market. The Rio de la Plata segment includes beers, ciders, non alcoholic beverages and spirits in the Argentine, Uruguayan and Paraguayan market. The Wine segment commercializes wine. Cia Cervecerias Unidas was founded by Joaquin Plagemann in 1850 and is headquartered in Santiago, Chile.

Disclaimer

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  • Read more here: http://www.capitalcube.com/blog/index.php/cia-cervecerias-unidas-sa-ccu-us-dividend-analysis-april-20th-2017-record-date-by-the-numbers-april-20-2017/