In This Article:
Exploring the Sustainability and Growth of Dividends
Vienna Insurance Group AG (VNRFY) recently announced a dividend of $0.3 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-05-24. 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 Vienna Insurance Group AG's dividend performance and assess its sustainability.
What Does Vienna Insurance Group AG Do?
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Vienna Insurance Group AG is a diversified insurance company that offers property and casualty, life, and health insurance products. The company maintains its goal of consolidating market leadership in Austria while taking advantage of the growth potential in Central and Eastern Europe. The company generates the majority of its revenue in Austria, followed by the Czech Republic and Poland. The company considers merger and acquisition investment as a component of its operational growth plan.
A Glimpse at Vienna Insurance Group AG's Dividend History
Vienna Insurance Group AG has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Vienna Insurance Group AG's Dividend Yield and Growth
As of today, Vienna Insurance Group AG currently has a 12-month trailing dividend yield of 3.88% and a 12-month forward dividend yield of 4.20%. This suggests an expectation of increase in dividend payments over the next 12 months.
Over the past three years, Vienna Insurance Group AG's annual dividend growth rate was 4.20%. Extended to a five-year horizon, this rate increased to 6.10% per year. And over the past decade, Vienna Insurance Group AG's annual dividends per share growth rate stands at -0.10%.
Based on Vienna Insurance Group AG's dividend yield and five-year growth rate, the 5-year yield on cost of Vienna Insurance Group AG stock as of today is approximately 5.22%.
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, Vienna Insurance Group AG's dividend payout ratio is 0.27.