Assurant Inc's Dividend Analysis
Insight into Assurant Inc's Upcoming Dividend and Historical Performance
Assurant Inc (NYSE:AIZ) recently announced a dividend of $0.72 per share, payable on 2024-03-25, with the ex-dividend date set for 2024-02-02. 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 Assurant Inc's dividend performance and assess its sustainability.
What Does Assurant Inc Do?
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Assurant Inc offers a range of property-casualty, health, employee benefit, and warranty insurance to a client base made up of individuals and institutions. Its segments are Global Housing, Global Lifestyle, Corporate and Other. Global Housing provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance; renters insurance and related products; and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products. Global Lifestyle, the key revenue-generating segment, provides mobile device solutions and extended service products and related services for mobile devices, consumer electronics and appliances; vehicle protection; and credit protection and other insurance products.
A Glimpse at Assurant Inc's Dividend History
Assurant Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a quarterly basis. Assurant Inc has increased its dividend each year since 2004. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 20 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Assurant Inc's Dividend Yield and Growth
As of today, Assurant Inc currently has a 12-month trailing dividend yield of 1.65% and a 12-month forward dividend yield of 1.68%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Assurant Inc's annual dividend growth rate was 4.10%. Extended to a five-year horizon, this rate increased to 5.10% per year. And over the past decade, Assurant Inc's annual dividends per share growth rate stands at an impressive 13.60%.
Based on Assurant Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Assurant Inc stock as of today is approximately 2.12%.
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 2023-09-30, Assurant Inc's dividend payout ratio is 0.19.
Assurant Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Assurant Inc's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. 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. Assurant Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Assurant Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Assurant Inc's revenue has increased by approximately 6.80% per year on average, a rate that outperforms approximately 59.33% 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, Assurant Inc's earnings increased by approximately 1.80% per year on average, a rate that outperforms approximately 48.25% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 1.10%, which outperforms approximately 36.77% of global competitors.
Concluding Thoughts on Assurant Inc's Dividend Fortitude
In conclusion, Assurant Inc's commitment to growing its dividends, combined with a conservative payout ratio and solid profitability, positions it as an attractive option for value investors seeking reliable income streams. Additionally, the company's favorable growth metrics paint a promising picture for the future, potentially offering both dividend sustainability and capital appreciation. As Assurant Inc continues to navigate the dynamic insurance industry landscape, investors will be watching closely to see if its strategic initiatives and competitive position will further enhance its dividend profile. Will Assurant Inc maintain its streak of dividend growth, and how will its financial health support this endeavor? Only time will tell, but the signs point to a positive trajectory for this seasoned dividend payer.
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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.
This article first appeared on GuruFocus.
