Yahoo Finance 4 Days Left To Cash In On Zurich Insurance Group AG (VTX:ZURN) Dividend
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Have you been keeping an eye on Zurich Insurance Group AG's (VTX:ZURN) upcoming dividend of US$19.00 per share payable on the 09 April 2019? Then you only have 4 days left before the stock starts trading ex-dividend on the 05 April 2019. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Zurich Insurance Group's latest financial data to analyse its dividend attributes.
See our latest analysis for Zurich Insurance Group
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically:
Its annual yield is among the top 25% of dividend payers
It consistently pays out dividend without missing a payment or significantly cutting payout
Its has increased its dividend per share amount over the past
It can afford to pay the current rate of dividends from its earnings
It is able to continue to payout at the current rate in the future
High Yield And Dependable
The company's dividend yield stands at 5.4%, which is high for Insurance stocks. But the real reason Zurich Insurance Group stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of ZURN it has increased its DPS from $6.7 to $17.8 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. This is an impressive feat, which makes ZURN a true dividend rockstar.
The company currently pays out 74% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect ZURN's payout to remain around the same level at 71% of its earnings. Assuming a constant share price, this equates to a dividend yield of 6.5%. Furthermore, EPS should increase to $27.42.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
Next Steps:
Zurich Insurance Group ticks all the boxes for what I look for in a dividend stock. If you are looking to build an income focused portfolio, this could be one to include. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company's fundamentals and underlying business before making an investment decision. I've put together three relevant factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for ZURN’s future growth? Take a look at our free research report of analyst consensus for ZURN’s outlook.
Valuation: What is ZURN worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether ZURN is currently mispriced by the market.
Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
