Yahoo Finance Hannover Rueck SE's Dividend Analysis
Exploring the Sustainability and Growth of Hannover Rueck SE's Dividends
Hannover Rueck SE (HVRRY) recently announced a dividend of $1.07 per share, payable on 2024-05-20, with the ex-dividend date set for 2024-05-07. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Hannover Rueck SE's dividend performance and assess its sustainability.
What Does Hannover Rueck SE Do?
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Hannover Re is a reinsurance company headquartered in Hannover, Germany. Its roots go back to the 1920s when, in conjunction with the Gerling Group, Haftpflichtverband founded Eisen- und Stahl-Industrie to provide reinsurance services. In the 1960s ownership of the business was turned over to Haftpflichtverband, and Aktiengesellschaft fur Transport und- Ruckversicherung was founded. This was the basis of Hannover Re. The business expanded into life and health reinsurance in the 1990s, and over the next 30 years expanded beyond its core domestic market of Germany to write business internationally. Hannover sold its commercial specialty insurance business to Talanx in January 2019. Hannover was listed in the 1990s on the Frankfurt Stock Exchange.
A Glimpse at Hannover Rueck SE's Dividend History
Hannover Rueck SE has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hannover Rueck SE's Dividend Yield and Growth
As of today, Hannover Rueck SE currently has a 12-month trailing dividend yield of 2.25% and a 12-month forward dividend yield of 2.63%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Hannover Rueck SE's annual dividend growth rate was 7.70%. Extended to a five-year horizon, this rate decreased to 7.30% per year. And over the past decade, Hannover Rueck SE's annual dividends per share growth rate stands at 6.20%.
Based on Hannover Rueck SE's dividend yield and five-year growth rate, the 5-year yield on cost of Hannover Rueck SE stock as of today is approximately 3.20%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Hannover Rueck SE's dividend payout ratio is 0.33.
Hannover Rueck SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hannover Rueck SE's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hannover Rueck SE's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Hannover Rueck SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hannover Rueck SE's revenue has decreased by approximately -63.50% per year on average, a rate that underperforms than approximately 99.15% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Hannover Rueck SE's earnings increased by approximately 25.70% per year on average, a rate that underperforms than approximately 27.54% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.90%, which underperforms than approximately 60.47% of global competitors.
Conclusion: Evaluating Hannover Rueck SE's Dividend Strategy
Considering Hannover Rueck SE's consistent dividend payments, growth in dividend rates, and solid payout ratio, the company appears to maintain a balanced approach towards rewarding its shareholders and sustaining its financial health. However, its mixed growth metrics suggest a cautious outlook for future dividend sustainability. Investors should keep an eye on the company's future earnings reports and market conditions that may impact its profitability and dividend stability. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
