Unraveling the Dividend Story of Global Indemnity Group LLC (GBLI)
A Comprehensive Analysis of the Company's Dividend Performance and Sustainability
Global Indemnity Group LLC (NYSE:GBLI) recently announced a dividend of $0.25 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-10-05. 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 deep dive into Global Indemnity Group LLCs dividend performance and assess its sustainability.
Understanding Global Indemnity Group LLC
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Global Indemnity Group LLC provides both admitted and non-admitted specialty property and casualty insurance coverages and individual policyholder coverages in the United States, as well as reinsurance worldwide. The company's three primary segments are Commercial Specialty, Reinsurance operations, and Exited Lines. The majority of its revenue is from the Commercial Specialty segment. Geographically, the majority is from California.
Global Indemnity Group LLC's Dividend History
Global Indemnity Group LLC 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.
Global Indemnity Group LLC's Dividend Yield and Growth
As of today, Global Indemnity Group LLC currently has a 12-month trailing dividend yield of 2.95% and a 12-month forward dividend yield of 2.95%. This suggests an expectation of same dividend payments over the next 12 months.
Based on Global Indemnity Group LLC's dividend yield and five-year growth rate, the 5-year yield on cost of Global Indemnity Group LLC stock as of today is approximately 2.95%.
Is Global Indemnity Group LLC's Dividend Sustainable?
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 2023-06-30, Global Indemnity Group LLC's dividend payout ratio is 0.38.
Global Indemnity Group LLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Global Indemnity Group LLC's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 6 years out of past 10 years.
Global Indemnity Group LLC's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Global Indemnity Group LLC'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 Global Indemnity Group LLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Global Indemnity Group LLC's revenue has increased by approximately 1.00% per year on average, a rate that underperforms than approximately 63.76% of global competitors.
Wrapping Up
Global Indemnity Group LLC's consistent dividend payments, combined with its fair profitability and growth metrics, make it an attractive option for dividend investors. However, investors should also consider the company's dividend payout ratio and revenue growth rate to assess the sustainability of its dividends. The future of Global Indemnity Group LLC's dividends will greatly depend on these factors.
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This article first appeared on GuruFocus.
