Yahoo Finance F&G Annuities & Life (NYSE:FG) Is Due To Pay A Dividend Of $0.21
F&G Annuities & Life, Inc. (NYSE:FG) has announced that it will pay a dividend of $0.21 per share on the 28th of June. This payment means that the dividend yield will be 2.2%, which is around the industry average.
See our latest analysis for F&G Annuities & Life
F&G Annuities & Life's Dividend Is Well Covered By Earnings
Solid dividend yields are great, but they only really help us if the payment is sustainable. The last dividend was quite easily covered by F&G Annuities & Life's earnings. This means that a large portion of its earnings are being retained to grow the business.
Over the next year, EPS is forecast to expand by 45.2%. If the dividend continues on this path, the payout ratio could be 42% by next year, which we think can be pretty sustainable going forward.
F&G Annuities & Life Is Still Building Its Track Record
Without a track record of dividend payments, we can't make a judgement on how stable it has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. F&G Annuities & Life has seen EPS rising for the last five years, at 37% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that F&G Annuities & Life could prove to be a strong dividend payer.
F&G Annuities & Life Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think F&G Annuities & Life might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for F&G Annuities & Life that investors should take into consideration. Is F&G Annuities & Life not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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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.
