Yahoo Finance Everest Re Group, Ltd. (NYSE:RE) Stock Goes Ex-Dividend In Just Four Days
Readers hoping to buy Everest Re Group, Ltd. (NYSE:RE) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Everest Re Group investors that purchase the stock on or after the 22nd of November will not receive the dividend, which will be paid on the 16th of December.
The company's next dividend payment will be US$1.65 per share, and in the last 12 months, the company paid a total of US$6.60 per share. Based on the last year's worth of payments, Everest Re Group has a trailing yield of 2.1% on the current stock price of $317.4. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Everest Re Group has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Everest Re Group
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Everest Re Group paid out a comfortable 47% of its profit last year.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're discomforted by Everest Re Group's 11% per annum decline in earnings in the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Everest Re Group has lifted its dividend by approximately 13% a year on average.
Final Takeaway
Has Everest Re Group got what it takes to maintain its dividend payments? Everest Re Group's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.
However if you're still interested in Everest Re Group as a potential investment, you should definitely consider some of the risks involved with Everest Re Group. For example - Everest Re Group has 2 warning signs we think you should be aware of.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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