Allianz SE's Dividend Analysis
Exploring the Sustainability of Allianz SE's Dividend Payments
Introduction to Allianz SE's Upcoming Dividend
Allianz SE (ALIZY) recently announced a dividend of $1.5 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-09. 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 Allianz SE's dividend performance and assess its sustainability.
Company Background
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Allianz SE was founded as a transport and accident insurance firm in 1890 by Carl von Thieme and Wilhelm von Finck, the founders of Munich Re. It took the company five years to expand the business into Europe and North America and subsequently listed in Berlin. After World War I, individuals were confronted with the loss of wealth, life, and security and Allianz founded a life business in the 1920s. In the years after World War II, Allianz's foreign assets were seized and it lost its foreign business. By relocating its head office from Berlin to Munich in 1948, Allianz began the long road of rebuilding its domestic business. It took 20 years for Allianz to reacquire its prior foreign interests, starting in Austria. It became the largest European insurer in the postwar boom era.
Reviewing Allianz SE's Dividend History
Allianz SE has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Allianz SE's Dividend Yield and Growth
As of today, Allianz SE currently has a 12-month trailing dividend yield of 4.28% and a 12-month forward dividend yield of 5.16%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Allianz SE's annual dividend growth rate was 5.90%. Extended to a five-year horizon, this rate increased to 6.90% per year. And over the past decade, Allianz SE's annual dividends per share growth rate stands at 8.80%.
Based on Allianz SE's dividend yield and five-year growth rate, the 5-year yield on cost of Allianz SE stock as of today is approximately 5.97%.
Assessing Dividend Sustainability: 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. As of 2023-12-31, Allianz SE's dividend payout ratio is 0.50, suggesting that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. Allianz SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Allianz SE's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Exploring Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Allianz SE'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 Allianz SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Allianz SE's revenue has increased by approximately -1.40% per year on average, a rate that underperforms approximately 72.19% 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, Allianz SE's earnings increased by approximately 7.90% per year on average, a rate that underperforms approximately 53.48% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 1.80%, which underperforms approximately 63.85% of global competitors.
Conclusion and Next Steps
Considering Allianz SE's consistent dividend payments, growth in dividend rates, and a solid payout ratio, the company presents a potentially sustainable dividend profile, supported by its fair profitability and growth metrics. However, investors should keep an eye on the revenue and earnings growth rates, which are crucial for long-term sustainability. For those interested in exploring further, 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.
This article first appeared on GuruFocus.
