MetLife Inc's Dividend Analysis
Understanding the Dividend Performance and Prospects of MetLife Inc
MetLife Inc (NYSE:MET) recently announced a dividend of $0.52 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-11-08. 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 delve into MetLife Inc's dividend performance and assess its sustainability.
About MetLife Inc
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MetLife is one of the largest life insurers in the U.S. by assets and provides a variety of insurance and financial services products. The company is organized into five segments: U.S., Asia, Latin America, EMEA, and MetLife Holdings. The U.S. business contributes around 41% of earnings, the Asia segment contributes around 28% of earnings, and the company also holds leading market positions in Mexico and Chile with the Latin America segment contributing around 6% of earnings. The EMEA and the MetLife segments contribute around 5% and 20% of earnings, respectively.
MetLife Inc's Dividend History
MetLife Inc has maintained a consistent dividend payment record since 2000, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2000, earning the status of a dividend achiever, a title given to companies that have increased their dividend each year for at least the past 23 years. The chart below shows the annual Dividends Per Share for tracking historical trends.
MetLife Inc's Dividend Yield and Growth
As of today, MetLife Inc currently has a 12-month trailing dividend yield of 3.39% and a 12-month forward dividend yield of 3.46%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, MetLife Inc's annual dividend growth rate was 4.40%. This rate remained the same over a five-year horizon, and over the past decade, MetLife Inc's annual dividends per share growth rate stands at 8.30%. Based on MetLife Inc's dividend yield and five-year growth rate, the 5-year yield on cost of MetLife Inc stock as of today is approximately 4.20%.
Payout Ratio and Profitability: Assessing Dividend Sustainability
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, MetLife Inc's dividend payout ratio is 0.00. MetLife Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks MetLife Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: A Look at the Future
To ensure the sustainability of dividends, a company must have robust growth metrics. MetLife Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. MetLife Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. 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. Lastly, the company's 5-year EBITDA growth rate of -3.30%, outperforms than approximately 23.47% of global competitors.
Conclusion
In conclusion, MetLife Inc's consistent dividend payments, favorable dividend growth rate, low payout ratio, and fair profitability make it an attractive option for dividend-focused investors. The company's growth metrics further bolster its prospects for future dividend sustainability. However, as with any investment, it's crucial to conduct thorough research and consider multiple factors before making a decision.
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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.
