Understanding the Dividend Trends and Prospects of Brookfield Reinsurance Ltd
Brookfield Reinsurance Ltd (BNRE, Financial) recently announced a dividend of $0.07 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-13. 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 Brookfield Reinsurance Ltd's dividend performance and assess its sustainability.
What Does Brookfield Reinsurance Ltd Do?
Brookfield Reinsurance Ltd owns and operates a reinsurance business focused on providing capital-based solutions to insurance companies and their stakeholders. The company offers a broad range of insurance products and services, including life insurance and annuities, and personal and commercial property and casualty insurance.
A Glimpse at Brookfield Reinsurance Ltd's Dividend History
Brookfield Reinsurance Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Brookfield Reinsurance Ltd's Dividend Yield and Growth
As of today, Brookfield Reinsurance Ltd currently has a 12-month trailing dividend yield of 1.21% and a 12-month forward dividend yield of 0.80%. This suggests an expectation of decreased dividend payments over the next 12 months.
Based on Brookfield Reinsurance Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Brookfield Reinsurance Ltd stock as of today is approximately 1.21%.
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, Brookfield Reinsurance Ltd's dividend payout ratio is 0.04.
Brookfield Reinsurance Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Brookfield Reinsurance Ltd's profitability 3 out of 10 as of 2023-06-30, suggesting the dividend may not be sustainable. The company has reported net profit in 3 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Brookfield Reinsurance Ltd's growth rank of 3 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is the lifeblood of any company, and Brookfield Reinsurance Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Brookfield Reinsurance Ltd's revenue has increased by approximately 96.50% per year on average, a rate that outperforms than approximately 98.91% 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, Brookfield Reinsurance Ltd's earnings increased by approximately 269.00% per year on average, a rate that outperforms than approximately 99.73% of global competitors.
In conclusion, while Brookfield Reinsurance Ltd has demonstrated a consistent dividend payment record, its low profitability and growth ranks raise questions about the sustainability of its dividends. Despite strong revenue and EPS growth rates, investors should closely monitor the company's payout ratio and profitability trends for a comprehensive understanding of its dividend prospects.
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