Dividend Yield: Dividend yield is the ratio of the annual dividend of the company to its share price. Mathematically, dividend yield = Annual dividend/ share price.
In this article, we will be discussing two stocks which are giving a dividend yield of ~4%.
QBE Insurance Group Limited (ASX: QBE)
QBE Insurance Group Limited is an ASX listed general insurance and reinsurance company with more than 12,000 employees in over 31 countries. The company offers commercial, personal and specialty products and risk management solutions to its customers.
On 25 February 2019, the company released its Financial year2018 results for the period ending 31 December 2018. During the period, the cash profit after tax was significantly up to $715 million. In FY2017, the company made a loss of $262 million. There was an increase in the Average Group-wide premium rate by 5%. There was an increase in the Gross written premium by 3% to $13,657 million. The debt/equity ratio reduced to 38%. The company declared a final dividend of 28 cents per share, franked at 60%.
The company declared a total shareholder payout of A$1,002 million, which is more than double as compared to the previous financial year. It also includes the share buyback.
On 7 May 2019, the company announced a buy-back of 250,000 shares for $3,207,300.00 on 6 May 2019. Prior to that, the company had completed the buy-back of 3,817,225 shares for $47,293,484.44.
As on 10 May 2019, the dividend yield was reported as 3.89%. The calculation of the dividend yield was done by adding the interim dividend + the final dividend/ market price of the share on 10 May 2019.
The stock has generated a decent YTD return of 30.36%. By the end of the trading session on 10 May 2019, the closing price of the share of QBE was A$12.650, down by 1.48% as compared to its previous closing price. QBE holds a market capitalization of A$17.02 billion with 1.33 billion outstanding shares and a PE ratio of 31.300x.
Insurance Australia Group Limited (ASX: IAG)
Insurance Australia Group Limited is a provider of general insurance, including a full range of personal and commercial insurance products.
As on 8 May 2019, the dividend yield was reported as 4.01%.
In the 1HFY2019 period, there was an increase in the net profit after tax from the ordinary activities, attributable to the shareholders of the parent from continuing operations by 6.7% to $8,581 million as compared to the previous corresponding period. IAG declared an interim dividend of 12 cps.
There was a marginal fall in the net asset base as a result of a fall in the total asset. The total shareholders’ equity was $6,341 million. By the end of IH FY2019 period, the IAG had net cash and cash equivalent of $1,135 million.
The stock has generated a decent YTD return of 15.20%. By the end of the trading session, on 10 May 2019, the shares of IAG closed at A$7.920, down by 0.503% as compared to its previous closing price. Insurance Australia Group Limited holds a market capitalization of A$18.28 billion with 2.31 billion outstanding shares and a PE ratio of 20.95x.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.