Equitable Holdings Inc's Dividend Analysis
An In-Depth Look at Equitable Holdings Inc's Upcoming Dividend Payout
Equitable Holdings Inc (NYSE:EQH) recently announced a dividend of $0.22 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-02-23. 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 Equitable Holdings Inc's dividend performance and assess its sustainability.
What Does Equitable Holdings Inc Do?
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Equitable Holdings Inc is a financial services company in the US. The company provides variable annuities, tax-deferred investment and retirement plans, employee benefits, and protection solutions for individuals, families, and small businesses. Its business segments include Individual Retirement, Group Retirement, Investment Management, Research, and Protection Solutions. The Individual Retirement segment offers annuity products, the Group Retirement segment provides tax-deferred investment and retirement services, Investment Management and Research segment consist of diversified investment management, research, and related services, and the Protection Solutions segment focuses on life insurance products.
A Glimpse at Equitable Holdings Inc's Dividend History
Equitable Holdings Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Equitable Holdings Inc's Dividend Yield and Growth
As of today, Equitable Holdings Inc currently has a 12-month trailing dividend yield of 2.50% and a 12-month forward dividend yield of 2.56%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Equitable Holdings Inc's annual dividend growth rate was 10.40%. Based on Equitable Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Equitable Holdings Inc stock as of today is approximately 2.50%.
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, Equitable Holdings Inc's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.
Equitable Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Equitable Holdings Inc's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Equitable Holdings Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Equitable Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Equitable Holdings Inc's revenue has increased by approximately 23.70% per year on average, a rate that outperforms approximately 90.73% 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, Equitable Holdings Inc's earnings increased by approximately 2.00% per year on average, a rate that outperforms approximately 46.54% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.70%, which outperforms approximately 64.73% of global competitors.
Concluding Thoughts on Equitable Holdings Inc's Dividend Profile
Equitable Holdings Inc's commitment to regular dividend payments, demonstrated growth in dividends per share, and a reasonable payout ratio paint a picture of a company that values returning capital to its shareholders. While the dividend payout ratio indicates a need for careful monitoring, the company's fair profitability and growth metrics suggest an ability to maintain, if not increase, its dividend payments in the foreseeable future. Investors considering Equitable Holdings Inc for its dividend prospects should also consider the company's competitive position, regulatory environment, and potential for future earnings growth. As always, it's essential to conduct thorough research and consider a balanced investment approach.
GuruFocus Premium users can screen for high-dividend yield stocks using the 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.
This article first appeared on GuruFocus.
