Tower (ASX:TWR) Dividend Payout Ratio: 2.46 (As of Mar. 2026) — 173% Above Median


ASX:TWR Tower Ltd ASX:TWR
85 GF Score
Price A$1.54
GF Value A$1.33
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Tower Dividend Payout Ratio?

Tower ASX:TWR 85 Dividend Payout Ratio is 2.46 as of Mar. 2026, which is 173% above its 10-year median of 0.90. GuruFocus rates ASX:TWR with a GF Score™ of 85/100 and a GF Value™ of A$1.33 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 337 Insurance companies, Tower ranks worse than 95.25% 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. Tower's Dividend Payout Ratio for the months ended in Mar. 2026 was 2.46.

Warning Sign:

If a company's dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of Tower Ltd is 1.48, which seems too high.

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

ASX:TWR' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.16   Med: 0.9   Max: 11
Current: 1.43

During the past 13 years, the highest Dividend Payout Ratio of Tower was 11.00. The lowest was 0.16. And the median was 0.90.

ASX:TWR's Dividend Payout Ratio is ranked worse than
95.25% of 337 companies
in the Insurance industry
Industry Median: 0.38 vs ASX:TWR: 1.43

As of today (2026-06-28), the Dividend Yield % of Tower is 11.77%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Tower was 22.56%. The lowest was 1.89%. And the median was 6.82%.

Tower's Dividends per Share for the months ended in Mar. 2026 was A$0.14.

During the past 12 months, Tower's average Dividends Per Share Growth Rate was 133.30% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 39.50% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Tower was 39.50% per year. The lowest was -9.10% per year. And the median was 6.75% 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.

Tower (ASX:TWR) 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.

Tower Dividend Payout Ratio Related Terms

Tower Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Tower'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.

Tower Dividend Payout Ratio Chart

Tower Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.49 0.96 8.75 0.14 0.61

Tower Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 0.00 0.25 0.47 0.80 2.46

ASX:TWR vs CB, PGR, TRV: Dividend Payout Ratio Comparison

For the Insurance - Property & Casualty subindustry, Tower'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.

Tower Dividend Payout Ratio vs Insurance Industry

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

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


ASX:TWR
85GF Score
Tower Ltd ASX:TWR
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tower 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.

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

Dividend Payout Ratio=Dividends per Share (A: Sep. 2025 )/ EPS without NRI (A: Sep. 2025 )
=0.125/ 0.205
=0.61

Tower's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.135/ 0.055
=2.45

* 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 2.46 mean?
Tower (ASX:TWR) has a Dividend Payout Ratio of 2.46 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Tower and its competitors. This is 173% above median its historical median of 0.90. Over the past decade, Tower's Dividend Payout Ratio has ranged from 0.16 to 11.00. According to the industry distribution chart, Tower ranks #321 out of 337 companies in the Insurance industry, placing it in the top 95.3%.
Is Tower's Dividend Payout Ratio too high?
Tower's current Dividend Payout Ratio of 2.46 is 173% above median its 10-year median of 0.90. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 11.00. The Insurance industry median Dividend Payout Ratio is 0.38. Tower's value of 2.46 is 547.4% above this industry median. Based on the distribution chart, Tower ranks #321 out of 337 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Tower has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower's Dividend Payout Ratio compare to CB and PGR?
According to the Insurance industry distribution chart, Tower ranks #321 out of 337 companies for Dividend Payout Ratio. This places Tower in the lower half of its industry. The industry median Dividend Payout Ratio is 0.38. Tower's value of 2.46 is 547.4% above this benchmark. Historically, Tower's own Dividend Payout Ratio has ranged from 0.16 to 11.00 over the past decade. While the company's 10-year median is 0.90 vs. the industry median of 0.38, Tower has consistently been above 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 337 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. Tower's current Dividend Payout Ratio of 2.46 is 547.4% above 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 Tower 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. Tower's current Dividend Payout Ratio is 2.46, which is 173% above median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower stock overvalued right now?
Based on GuruFocus' analysis, Tower (ASX:TWR) is currently considered Modestly Overvalued. The stock's GF Value™ is A$1.33, compared to a current price of A$1.54 — trading 15.8% above its estimated fair value. The current Dividend Payout Ratio is 2.46, which is 173% above median its 10-year median of 0.90 and 547.4% above the Insurance industry median of 0.38. Tower's overall GF Score™ is 85/100 with 3 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 Tower (ASX:TWR), the current Dividend Payout Ratio is 2.46 as of Mar. 2026. 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 Tower (ASX:TWR) Overvalued in 2026?

Based on GuruFocus' analysis, Tower stock appears to be overvalued. The current stock price of A$1.54 is trading 15.8% above its estimated GF Value™ of A$1.33. GuruFocus considers Tower to be Modestly Overvalued.

Key valuation signals for ASX:TWR:

  • Dividend Payout Ratio: 2.46 (173% above median its 10-year median of 0.90)
  • GF Value™: A$1.33 vs. price of A$1.54 (15.8% above fair value)
  • GF Score™: 85/100 with 3 warning signs
  • Industry Position: 547.4% above the Insurance median (#321 of 337)

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

Tower Business Description

Other Exchanges TWR:New ZealandUCNA:Germany
Address 136 Fanshawe Street, Level 5, PO Box 90347, Auckland, NTL, NZL, 1142
Tower Ltd is a general insurance company. The company provides insurance services namely car, house, contents, travel, business, boat insurance, and among others. The company has two geographical segments, New Zealand General Insurance, and Pacific Islands General Insurance. The company derives the majority of its revenue from the New Zealand segment.
85GF Score

Get the complete analysis for ASX:TWR

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

A$1.54
Price
A$1.33
GF Value