Yahoo Finance Assicurazioni Generali's Dividend Analysis
Exploring the Sustainability and Growth of Assicurazioni Generali's Dividends
Assicurazioni Generali (ARZGY) recently announced a dividend of $0.68 per share, payable on a date yet to be announced, with the ex-dividend date set for 2024-05-20. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis delves into the dividend performance of Assicurazioni Generali and evaluates its long-term sustainability.
What Does Assicurazioni Generali Do?
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Founded in the 1830s, Assicurazioni Generali began its journey amidst the challenging conditions of the Bora wind and rough seas in the Trieste region. The Italian Revolution in the 1840s facilitated its expansion across Italy, although growth was initially hampered by the nation's fragmented state. Post-World War I, with Trieste returned to Italy and the dissolution of the Austro-Hungarian Empire, Generali faced a new kind of fragmentation. Today, while it remains diversified, its core operations are concentrated in the historical Austro-Hungarian regions like Italy, Germany, Austria, and Central and Eastern Europe, with significant contributions from France in life and savings sectors.
A Glimpse at Assicurazioni Generali's Dividend History
Assicurazioni Generali has upheld a consistent dividend payment record since 2009, with dividends distributed annually. Below is an image illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Assicurazioni Generali's Dividend Yield and Growth
Currently, Assicurazioni Generali boasts a 12-month trailing dividend yield of 4.56% and a 12-month forward dividend yield of 5.02%, indicating an expected increase in dividend payments over the next year. Over the past three years, the annual dividend growth rate was 5.90%, which extended to 7.40% per annum over five years and an impressive 17.40% over the past decade.
Based on Assicurazioni Generali's current dividend yield and five-year growth rate, the 5-year yield on cost is approximately 6.52%.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of dividends involves examining the dividend payout ratio, which currently stands at 0.39 for Assicurazioni Generali. This lower ratio suggests that the company retains a substantial portion of its earnings, ensuring funds are available for future growth and downturns. The company's profitability rank is 5 out of 10, reflecting fair profitability with consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
Assicurazioni Generali's growth metrics, including a growth rank of 5 out of 10, suggest a fair growth outlook. Although the company's revenue per share and 3-year revenue growth rate indicate a strong revenue model, it underperforms 79.79% of global competitors. The 3-year EPS growth rate and 5-year EBITDA growth rate also reflect moderate performance relative to peers.
Conclusion
Assicurazioni Generali's consistent dividend payments, robust dividend growth rates, and a prudent payout ratio underscore its potential as a reliable dividend-paying stock. While its profitability and growth metrics present a mixed outlook, the historical dividend increases and financial stability may appeal to long-term investors. For those seeking high-dividend yield opportunities, consider exploring the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
