Assessing the Upcoming Dividend and Historical Performance
Swiss Re AG (SSREY, Financial) recently announced a dividend of $1.7 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-16. 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 Swiss Re AGs dividend performance and assess its sustainability.
What Does Swiss Re AG Do?
Swiss Re is a global leader in reinsurance, operating through its three core divisions: property and casualty reinsurance, life and health reinsurance, and corporate solutions. With roots dating back to 1863, Swiss Re AG has evolved into the world's second-largest reinsurer by market cap. It boasts a presence in 80 offices worldwide and employs nearly 15,000 individuals. After a period of strategic diversification, Swiss Re AG has refocused on strengthening its core divisions to ensure long-term stability and growth.
A Glimpse at Swiss Re AG's Dividend History
Swiss Re AG has a commendable track record of consistent dividend payments dating back to at least 2012, with distributions occurring annually. This history reflects the company's commitment to returning value to shareholders.
Below is a chart illustrating the annual Dividends Per Share for Swiss Re AG, which provides insights into its historical dividend trends.
Breaking Down Swiss Re AG's Dividend Yield and Growth
Swiss Re AG's current 12-month trailing dividend yield stands at 5.47%, with a 12-month forward dividend yield of 5.86%, indicating anticipated dividend growth over the next year.
Over the past three years, Swiss Re AG's annual dividend growth rate was a modest 0.90%. This figure rises to 2.10% when extended over five years and reaches an impressive 4.60% over the past decade.
Considering Swiss Re AG's dividend yield and five-year growth rate, the 5-year yield on cost for Swiss Re AG stock is approximately 6.07%.
The Sustainability Question: Payout Ratio and Profitability
When evaluating dividend sustainability, the dividend payout ratio is crucial. Swiss Re AG's ratio of 0.60 as of 2023-12-31 suggests a balance between distributing earnings and retaining funds for future growth. Swiss Re AG's profitability rank is 6 out of 10, indicating fair profitability and a consistent track record of net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Swiss Re AG's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a solid revenue model, despite growing at a slower pace than some global competitors.
Next Steps
In summary, Swiss Re AG's upcoming dividend, consistent historical payments, and moderate growth rate in dividends per share demonstrate the company's shareholder-friendly approach. The payout ratio and profitability rank further reinforce the dividend's sustainability, while the growth metrics provide a cautious yet stable future outlook. Value investors may find Swiss Re AG an attractive option for steady income with potential for growth. For those seeking to expand their portfolios with high-dividend yield stocks, GuruFocus Premium offers a 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.
