Assicurazioni Generali S.p.A. (BIT:G) Goes Ex-Dividend In 3 Days
Assicurazioni Generali S.p.A. (BIT:G) is about to trade ex-dividend in the next 3 days. You can purchase shares before the 18th of May in order to receive the dividend, which the company will pay on the 20th of May.
Assicurazioni Generali's next dividend payment will be €0.50 per share, on the back of last year when the company paid a total of €0.96 to shareholders. Last year's total dividend payments show that Assicurazioni Generali has a trailing yield of 7.6% on the current share price of €12.56. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.
See our latest analysis for Assicurazioni Generali
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Assicurazioni Generali paid out 69% of its earnings to investors last year, a normal payout level for most businesses.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Assicurazioni Generali, with earnings per share up 4.6% on average over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Assicurazioni Generali has delivered an average of 11% per year annual increase in its dividend, based on the past ten years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
Final Takeaway
Has Assicurazioni Generali got what it takes to maintain its dividend payments? Assicurazioni Generali has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.
However if you're still interested in Assicurazioni Generali as a potential investment, you should definitely consider some of the risks involved with Assicurazioni Generali. Every company has risks, and we've spotted 3 warning signs for Assicurazioni Generali you should know about.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
