Voya Financial Inc's Dividend Analysis
Insights into Voya Financial Inc's Upcoming Dividend and Historical Performance
Voya Financial Inc(NYSE:VOYA) recently announced a dividend of $0.4 per share, payable on 2024-03-27, 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 Voya Financial Inc's dividend performance and assess its sustainability.
What Does Voya Financial Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Voya Financial Inc is a financial services company, which, through its subsidiaries, provides various investment, insurance, and retirement solutions to individual and institutional clients in the United States. Its products and services include tax savings plans, individual retirement accounts, group life insurance plans, and employee benefits products, among others. The company tailors each of its products to the needs of its customer base. It operates its business through three principal lines: Wealth Solutions, Investment Management, and Health Solutions. The Wealth segment generates roughly half of the company's revenue.
A Glimpse at Voya Financial Inc's Dividend History
Voya Financial Inc has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Voya Financial Inc has increased its dividend each year since 2013. 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 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Voya Financial Inc's Dividend Yield and Growth
As of today, Voya Financial Inc currently has a 12-month trailing dividend yield of 1.73% and a 12-month forward dividend yield of 2.34%. This suggests an expectation of increased dividend payments over the next 12 months.
Voya Financial Inc's dividend yield of 1.73% is near a 10-year high and outperforms 22.5% of global competitors in the Diversified Financial Services industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Voya Financial Inc's annual dividend growth rate was 35.70%. Extended to a five-year horizon, this rate increased to 99.50% per year. Based on Voya Financial Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Voya Financial Inc stock as of today is approximately 54.67%.
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, Voya Financial Inc's dividend payout ratio is 0.17.
Voya Financial Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Voya Financial 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 the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Voya Financial 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 Voya Financial Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Voya Financial Inc's revenue has increased by approximately 2.20% per year on average, a rate that underperforms approximately 53.42% 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, Voya Financial Inc's earnings increased by approximately -5.30% per year on average, a rate that underperforms approximately 64.06% of global competitors.
Concluding Thoughts on Voya Financial Inc's Dividend Outlook
Considering Voya Financial Inc's consistent dividend payments, impressive growth rate, and prudent payout ratio, the company's dividend appears sustainable in the near term. However, the mixed signals from its profitability and growth metrics suggest that investors should keep an eye on the underlying business performance to ensure long-term dividend stability. Voya Financial Inc's dividend strategy may continue to reward investors, but as with any investment, it's essential to monitor the company's financial health and market position. Will Voya Financial Inc continue its dividend growth streak, or will industry and economic factors alter its course? Only time will tell, but for now, Voya Financial Inc remains a noteworthy dividend contender.
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.
