Insights into QBE Insurance Group Ltd's Upcoming Dividend Payment
QBE Insurance Group Ltd (QBIEY, Financial) recently announced a dividend of $0.31 per share, payable on 2024-04-19, with the ex-dividend date set for 2024-03-06. 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 QBE Insurance Group Ltd's dividend performance and assess its sustainability.
What Does QBE Insurance Group Ltd Do?
QBE Insurance is an international property and casualty insurance company. It writes around 25% of its annual gross written premiums in its home region of Australia and New Zealand. Other key regions include North America and Europe. QBE Insurance offers a number of personal, commercial, and specialty lines, including property, auto insurance, agriculture, public/product liability, professional indemnity, workers compensation, marine, energy and aviation, and accident and health.
A Glimpse at QBE Insurance Group Ltd's Dividend History
QBE Insurance Group Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down QBE Insurance Group Ltd's Dividend Yield and Growth
As of today, QBE Insurance Group Ltd currently has a 12-month trailing dividend yield of 2.55% and a 12-month forward dividend yield of 3.52%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, QBE Insurance Group Ltd's annual dividend growth rate was 17.20%. Extended to a five-year horizon, this rate decreased to -0.50% per year. And over the past decade, QBE Insurance Group Ltd's annual dividends per share growth rate stands at -3.40%.
Based on QBE Insurance Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of QBE Insurance Group Ltd stock as of today is approximately 2.49%.
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, QBE Insurance Group Ltd's dividend payout ratio is 0.34.
QBE Insurance Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks QBE Insurance Group Ltd's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. QBE Insurance Group Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and QBE Insurance Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. QBE Insurance Group Ltd's revenue has increased by approximately 16.70% per year on average, a rate that outperforms approximately 84.06% of global competitors.
Concluding Thoughts on QBE Insurance Group Ltd's Dividend Outlook
In conclusion, QBE Insurance Group Ltd's consistent dividend payments, promising dividend growth rate, prudent payout ratio, and fair profitability and growth metrics paint a picture of a company committed to rewarding its shareholders. While past performance is no guarantee of future results, these factors provide a solid foundation for investors considering QBE Insurance Group Ltd as a potential addition to their dividend portfolios. Will QBE Insurance Group Ltd continue to deliver stable and growing dividends in the years to come? Only time will tell, but the current indicators suggest a positive trajectory for income-focused investors.
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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.
