Exploring the Sustainability and Growth of MGIC Investment Corp's Dividends
Upcoming Dividend Details for MGIC Investment Corp
MGIC Investment Corp (MTG, Financial) has recently declared a dividend of $0.12 per share, set to be paid on May 21, 2024. The ex-dividend date is scheduled for May 8, 2024. This announcement has drawn attention to MGIC Investment Corp's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into the performance and sustainability of MGIC Investment Corp's dividend distributions.
Understanding MGIC Investment Corp's Business Model
MGIC Investment Corp provides private mortgage insurance and other mortgage credit risk management solutions, along with ancillary services. The majority of the company's revenue comes from insurance premiums paid by customers for protection, with investment income making up the remainder. MGIC Investment Corp operates across all 50 states in the U.S. and Puerto Rico, with significant exposure in states like California, Florida, and Texas.
Reviewing MGIC Investment Corp's Dividend History
Since 2019, MGIC Investment Corp has maintained a consistent record of dividend payments, distributing dividends on a quarterly basis. The following chart illustrates the annual Dividends Per Share to help track historical trends.
MGIC Investment Corp's Dividend Yield and Growth Analysis
Currently, MGIC Investment Corp boasts a trailing dividend yield of 2.13% and a forward dividend yield of 2.20%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate has been an impressive 21.50%. The 5-year yield on cost for MGIC Investment Corp stock is also approximately 2.13%.
Evaluating the Sustainability of MGIC Investment Corp's Dividends
The dividend payout ratio, which stands at 0.17 as of March 31, 2024, indicates that MGIC Investment Corp retains a substantial portion of its earnings, enhancing its capacity for future growth and stability. The company's profitability rank is 7 out of 10, reflecting strong earnings potential compared to its peers. MGIC Investment Corp has consistently reported positive net income over the past decade, reinforcing its robust financial health.
Future Growth Prospects of MGIC Investment Corp
MGIC Investment Corp's growth rank is also favorable at 7 out of 10. The company's revenue per share and 3-year revenue growth rate suggest a solid revenue model, although its performance is slightly below average compared to global competitors. The 3-year EPS growth rate and 5-year EBITDA growth rate further underline MGIC Investment Corp's ability to enhance its earnings, which is crucial for sustaining dividend payments over the long term.
Conclusion: Is MGIC Investment Corp's Dividend Sustainable?
Considering MGIC Investment Corp's consistent dividend payments, robust payout ratio, and solid profitability and growth metrics, the company appears well-positioned to maintain its dividend distributions in the foreseeable future. Investors seeking to explore further high-dividend yield opportunities can utilize the High Dividend Yield Screener available to GuruFocus Premium users.
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.
