An In-depth Look at Ageas SA/ NV's Dividend Performance and Sustainability
Ageas SA/ NV (AGESY, Financial) recently announced a dividend of $1.6 per share, payable on 2023-11-03, with the ex-dividend date set for 2023-10-25. 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 Ageas SA/ NV's dividend performance and assess its sustainability.
What Does Ageas SA/ NV Do?
Ageas is a life and nonlife insurance company that derives most of its income from life and savings, mostly from Belgium and is headquartered in Brussels. Ageas is essentially the result of the failed bid for ABN Amro by Banco Santander; Fortis; Royal Bank of Scotland. The capital requirements placed on these banks as a result of the acquisition combined with severe write-downs on its collateralised debt obligations in the case of Fortis left the business requiring capital. A less successful capital raising that took place during the global financial crisis wasn't enough and the bank, Fortis, had to be sold and nationalized. What remained was Fortis Insurance, which in 2010 was renamed to Ageas.
A Glimpse at Ageas SA/ NV's Dividend History
Ageas SA/ NV has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ageas SA/ NV's Dividend Yield and Growth
As of today, Ageas SA/ NV currently has a 12-month trailing dividend yield of 7.75% and a 12-month forward dividend yield of 8.02%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Ageas SA/ NV's annual dividend growth rate was 24.50%. Extended to a five-year horizon, this rate decreased to 13.40% per year. And over the past decade, Ageas SA/ NV's annual dividends per share growth rate stands at an impressive 11.50%.
Based on Ageas SA/ NV's dividend yield and five-year growth rate, the 5-year yield on cost of Ageas SA/ NV stock as of today is approximately 14.53%.
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 2023-06-30, Ageas SA/ NV's dividend payout ratio is 0.61.
Ageas SA/ NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Ageas SA/ NV's profitability 6 out of 10 as of 2023-06-30, 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: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Ageas SA/ NV'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 Ageas SA/ NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Ageas SA/ NV's revenue has increased by approximately -11.00% per year on average, a rate that underperforms than approximately 88.84% 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, Ageas SA/ NV's earnings increased by approximately 2.60% per year on average, a rate that underperforms than approximately 51.23% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.00%, which underperforms than approximately 35.64% of global competitors.
Next Steps
Considering Ageas SA/ NV's consistent dividend payments, impressive dividend growth rate, sustainable payout ratio, fair profitability, and growth metrics, the company appears to be a solid choice for dividend investors. However, it is essential to keep an eye on the company's future performance and industry trends to ensure the sustainability of its 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.
