Yahoo Finance Assurant Inc's Dividend Analysis
Exploring the Sustainability and Growth of Assurant Inc's Dividends
Introduction to Assurant Inc's Recent Dividend Announcement
Assurant Inc (NYSE:AIZ) recently announced a dividend of $0.72 per share, payable on June 24, 2024, with the ex-dividend date set for June 10, 2024. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis, supported by data from GuruFocus, will assess the sustainability of Assurant Inc's dividend performance.
What Does Assurant Inc Do?
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Assurant Inc operates in the insurance sector, offering a variety of property-casualty, health, employee benefits, and warranty insurance products to both individual and institutional clients. Its business is segmented into Global Housing and Global Lifestyle, with the latter being the primary revenue generator. The Global Housing segment includes a range of lender-placed and voluntary insurance products, while Global Lifestyle focuses on mobile device solutions, extended service products, vehicle protection, and credit protection among other insurance products.
A Glimpse at Assurant Inc's Dividend History
Assurant Inc has a long-standing tradition of distributing dividends, having done so consistently since 2004. The dividends are paid quarterly, and the company has increased its dividend annually since 2004, earning it the status of a dividend achiever. This accolade is reserved for companies that have raised their dividends annually for at least the past 20 years. Below is a visual representation of the annual Dividends Per Share to track historical trends.
Breaking Down Assurant Inc's Dividend Yield and Growth
Currently, Assurant Inc boasts a 12-month trailing dividend yield of 1.64% and a forward dividend yield of 1.66%, indicating expectations of increased dividend payments over the next year. Over the past three years, the annual dividend growth rate was 3.40%, which rose to 4.30% over a five-year period. Over the last decade, the annual growth rate of dividends per share has been an impressive 11.30%. Today, the 5-year yield on cost for Assurant Inc stock is approximately 2.05%.
The Sustainability Question: Payout Ratio and Profitability
Evaluating the sustainability of dividends involves looking at the dividend payout ratio, which at 0.15 as of March 31, 2024, indicates that Assurant Inc retains a substantial portion of its earnings for future growth and stability. The company's profitability rank is 7 out of 10, reflecting strong earnings relative to its peers. Assurant Inc has also reported consistent positive net income over the past decade, further solidifying its profitability.
Growth Metrics: The Future Outlook
Assurant Inc's growth rank of 7 suggests a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate of 10.80% annually outperforms 61.31% of global competitors. Additionally, its 3-year EPS growth rate of 27.80% annually and 5-year EBITDA growth rate of 24.60% further demonstrate its robust earnings capability.
Conclusion
Considering Assurant Inc's consistent dividend payments, growth in dividend rates, prudent payout ratios, and strong profitability and growth metrics, the company presents a compelling case for investors seeking stable dividend returns. The data suggests that Assurant Inc is not only maintaining its dividends but is also positioning itself for sustainable growth in the future. For investors looking for high-dividend yield stocks, consider using the High Dividend Yield Screener available for 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.
