Unveiling the Dividend Performance of Lincoln National Corp (LNC)
A Comprehensive Analysis on the Company's Dividend Yield, Growth, and Sustainability
Lincoln National Corp (NYSE:LNC) recently announced a dividend of $0.45 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-10-06. As investors anticipate this forthcoming payment, the company's dividend history, yield, and growth rates come under scrutiny. This article leverages GuruFocus data to delve into Lincoln National Corp's dividend performance and evaluate its sustainability.
Company Overview: Lincoln National Corp (NYSE:LNC)
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Lincoln National Corp operates in the insurance and retirement sector, offering a range of products and services. The company's operating segment includes Annuities; Retirement Plan Services; Life Insurance and Group Protection. Its product offerings primarily include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL and VUL, indexed universal life insurance (IUL), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental.
Lincoln National Corp's Dividend History
Since 1986, Lincoln National Corp has upheld a consistent dividend payment record, with dividends currently distributed quarterly. Furthermore, the company has increased its dividend each year since 2009, earning it the status of a dividend achiever. This accolade is given to companies that have increased their dividend each year for at least the past 14 years.
Lincoln National Corp's Dividend Yield and Growth
As of today, Lincoln National Corp boasts a 12-month trailing dividend yield and a 12-month forward dividend yield of 7.72% each, indicating an expectation of consistent dividend payments in the next 12 months.
Over the past three years, the company's annual dividend growth rate was 6.00%. When extended to five years, this rate escalated to 8.30% per year. Over the past decade, Lincoln National Corp's annual dividends per share growth rate stands at a commendable 16.50%. Consequently, based on the dividend yield and five-year growth rate, the 5-year yield on cost of Lincoln National Corp stock as of today is approximately 11.50%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is determined by evaluating the company's payout ratio. The dividend payout ratio offers insight into the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, ensuring funds for future growth and unforeseen downturns. As of 2023-06-30, Lincoln National Corp's dividend payout ratio is 0.00.
Lincoln National Corp's profitability rank of 6 out of 10 as of 2023-06-30 suggests fair profitability. The company has reported net profit in 9 out of the past 10 years.
Future Outlook: Growth Metrics
A company must have robust growth metrics to ensure the sustainability of dividends. Lincoln National Corp's growth rank of 6 out of 10 suggests a fair growth outlook. Furthermore, Lincoln National Corp's revenue per share and 3-year revenue growth rate indicate a strong revenue model. The company's revenue has increased by approximately 8.60% per year on average, a rate that outperforms approximately 66.38% of global competitors.
Conclusion
Lincoln National Corp's consistent dividend payments, impressive growth rate, low payout ratio, fair profitability, and robust growth metrics make it a promising prospect for investors seeking steady dividend income. However, investors should continually monitor these factors to ensure the sustainability of dividends. 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.
