Axis Capital Holdings Ltd's Dividend Analysis
An In-Depth Look at Axis Capital Holdings Ltd's Upcoming Dividend and Historical Performance
Axis Capital Holdings Ltd(NYSE:AXS) recently announced a dividend of $0.44 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-03-01. 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 Axis Capital Holdings Ltd's dividend performance and assess its sustainability.
What Does Axis Capital Holdings Ltd Do?
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Axis Capital Holdings Ltd is a property and casualty insurance company that provides various products and services to clients and distribution partners. The company has operating subsidiaries and branch networks based in Bermuda, the United States, Canada, Europe, and Singapore. Its business consists of two distinct global underwriting platforms, AXIS Insurance, and AXIS Reinsurance. The company manages its portfolio holistically, aiming to construct an optimum consolidated portfolio of funded and unfunded risks.
A Glimpse at Axis Capital Holdings Ltd's Dividend History
Axis Capital Holdings Ltd has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Axis Capital Holdings Ltd has increased its dividend each year since 2003. 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 21 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Axis Capital Holdings Ltd's Dividend Yield and Growth
As of today, Axis Capital Holdings Ltd currently has a 12-month trailing dividend yield of 2.84% and a 12-month forward dividend yield of 2.84%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Axis Capital Holdings Ltd's annual dividend growth rate was 2.40%. Extended to a five-year horizon, this rate increased to 2.50% per year. And over the past decade, Axis Capital Holdings Ltd's annual dividends per share growth rate stands at 6.40%.
Based on Axis Capital Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Axis Capital Holdings Ltd stock as of today is approximately 3.21%.
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, Axis Capital Holdings Ltd's dividend payout ratio is 0.18.
Axis Capital Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Axis Capital Holdings 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 past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Axis Capital Holdings 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 Axis Capital Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Axis Capital Holdings Ltd's revenue has increased by approximately 0.30% per year on average, a rate that underperforms approximately 67.4% 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, Axis Capital Holdings Ltd's earnings increased by approximately 32.10% per year on average, a rate that underperforms approximately 16.67% of global competitors.
Concluding Thoughts on Axis Capital Holdings Ltd's Dividend Outlook
Considering Axis Capital Holdings Ltd's consistent dividend payments, moderate growth rates, and a manageable payout ratio, the company presents a stable dividend profile for value investors. The balance between profitability, prudent financial management, and growth prospects suggests a positive outlook for Axis Capital Holdings Ltd's ability to maintain and potentially grow its dividends. As investors evaluate the attractiveness of Axis Capital Holdings Ltd as a dividend-paying stock, they should also consider the broader industry trends, regulatory changes, and the company's strategic initiatives to stay competitive. Will Axis Capital Holdings Ltd continue to be a reliable source of dividends for years to come? Only time will tell, but the current analysis offers a promising picture for dividend enthusiasts.
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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.
