Challenger (ASX:CGF) Dividend Payout Ratio: 0.34 (As of Dec. 2025) — 35% Below Median


ASX:CGF Challenger Ltd ASX:CGF
58 GF Score
Price A$9.75
GF Value A$4.09
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Challenger Dividend Payout Ratio?

Challenger ASX:CGF -0.71% 58 Dividend Payout Ratio is 0.34 as of Dec. 2025, which is 35% below its 10-year median of 0.52. GuruFocus rates ASX:CGF with a GF Score™ of 58/100 and a GF Value™ of A$4.09 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 335 Insurance companies, Challenger ranks worse than 63.58% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Challenger's Dividend Payout Ratio for the months ended in Dec. 2025 was 0.34.

The historical rank and industry rank for Challenger's Dividend Payout Ratio or its related term are showing as below:

ASX:CGF' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.28   Med: 0.52   Max: 0.79
Current: 0.48

During the past 13 years, the highest Dividend Payout Ratio of Challenger was 0.79. The lowest was 0.28. And the median was 0.52.

ASX:CGF's Dividend Payout Ratio is ranked worse than
63.58% of 335 companies
in the Insurance industry
Industry Median: 0.38 vs ASX:CGF: 0.48

As of today (2026-06-27), the Dividend Yield % of Challenger is 3.11%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Challenger was 9.86%. The lowest was 1.27%. And the median was 3.44%.

Challenger's Dividends per Share for the months ended in Dec. 2025 was A$0.15.

During the past 12 months, Challenger's average Dividends Per Share Growth Rate was 11.30% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 8.40% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 5.20% per year. During the past 10 years, the average Dividends Per Share Growth Rate was -3.80% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Challenger was 38.10% per year. The lowest was -35.30% per year. And the median was 10.50% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Challenger (ASX:CGF) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Challenger Dividend Payout Ratio Related Terms

Challenger Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Challenger's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Challenger Dividend Payout Ratio Chart

Challenger Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.28 0.54 0.51 0.45 0.46

Challenger Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.41 1.30 1.31 0.84 0.34

ASX:CGF vs AFL, MET, PRU: Dividend Payout Ratio Comparison

For the Insurance - Life subindustry, Challenger's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Challenger Dividend Payout Ratio vs Insurance Industry

For the Insurance industry and Financial Services sector, Challenger's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Challenger's Dividend Payout Ratio falls into.


ASX:CGF
58GF Score
Challenger Ltd ASX:CGF
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Challenger Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Challenger's Dividend Payout Ratio for the fiscal year that ended in Jun. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Jun. 2025 )/ EPS without NRI (A: Jun. 2025 )
=0.28/ 0.616
=0.45

Challenger's Dividend Payout Ratio for the quarter that ended in Dec. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Dec. 2025 )/ EPS without NRI (Q: Dec. 2025 )
=0.15/ 0.446
=0.34

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.34 mean?
Challenger (ASX:CGF) has a Dividend Payout Ratio of 0.34 as of Dec. 2025. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Challenger and its competitors. This is 35% below median its historical median of 0.52. Over the past decade, Challenger's Dividend Payout Ratio has ranged from 0.28 to 0.79. According to the industry distribution chart, Challenger ranks #213 out of 335 companies in the Insurance industry, placing it in the top 63.6%.
Is Challenger's Dividend Payout Ratio too high?
Challenger's current Dividend Payout Ratio of 0.34 is 35% below median its 10-year median of 0.52. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 0.79. The Insurance industry median Dividend Payout Ratio is 0.38. Challenger's value of 0.34 is 10.5% below this industry median. Based on the distribution chart, Challenger ranks #213 out of 335 companies in the Insurance industry, which is below the industry midpoint. Overall, Challenger has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's Dividend Payout Ratio compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #213 out of 335 companies for Dividend Payout Ratio. This places Challenger in the lower half of its industry. The industry median Dividend Payout Ratio is 0.38. Challenger's value of 0.34 is 10.5% below this benchmark. Historically, Challenger's own Dividend Payout Ratio has ranged from 0.28 to 0.79 over the past decade. While the company's 10-year median is 0.52 vs. the industry median of 0.38, Challenger has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Insurance company?
The median Dividend Payout Ratio among Insurance companies is 0.38, based on 335 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Challenger's current Dividend Payout Ratio of 0.34 is 10.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Challenger and its competitors. For the Insurance industry, the median Dividend Payout Ratio is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current Dividend Payout Ratio is 0.34, which is 35% below median its own 10-year median of 0.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.09, compared to a current price of A$9.75 — trading 138.4% above its estimated fair value. The current Dividend Payout Ratio is 0.34, which is 35% below median its 10-year median of 0.52 and 10.5% below the Insurance industry median of 0.38. Challenger's overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Challenger (ASX:CGF), the current Dividend Payout Ratio is 0.34 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Challenger (ASX:CGF) Overvalued in 2026?

Based on GuruFocus' analysis, Challenger stock appears to be overvalued. The current stock price of A$9.75 is trading 138.4% above its estimated GF Value™ of A$4.09. GuruFocus considers Challenger to be Significantly Overvalued.

Key valuation signals for ASX:CGF:

  • Dividend Payout Ratio: 0.34 (35% below median its 10-year median of 0.52)
  • GF Value™: A$4.09 vs. price of A$9.75 (138.4% above fair value)
  • GF Score™: 58/100 with 8 warning signs
  • Industry Position: 10.5% below the Insurance median (#213 of 335)

No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Challenger Business Description

Address 5 Martin Place, Level 2, Sydney, NSW, AUS, 2000
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
58GF Score

Get the complete analysis for ASX:CGF

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$9.75
Price
A$4.09
GF Value