Understanding the Sustainability and Growth Prospects of CRBG's Dividend
Corebridge Financial Inc(CRBG, Financial) recently announced a dividend of $0.23 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. As investors eagerly anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Drawing from GuruFocus data, we delve into Corebridge Financial Inc's dividend performance and evaluate its sustainability.
About Corebridge Financial Inc
Corebridge Financial Inc is a provider of retirement solutions and insurance products in the United States. The company offers a diverse range of products and services across five segments: Individual Retirement, Group Retirement, Life Insurance, Institutional Markets businesses, Corporate and Other.
Corebridge Financial Inc's Dividend History
Corebridge Financial Inc has upheld a consistent dividend payment record since 2022, with dividends currently distributed on a quarterly basis. The company is recognized as a dividend king for increasing its dividend each year since -.
Below is a chart illustrating the annual Dividends Per Share for tracking historical trends.
Dissecting Corebridge Financial Inc's Dividend Yield and Growth
As of today, Corebridge Financial Inc boasts a 12-month trailing dividend yield of 5.02% and a 12-month forward dividend yield of 5.02%, implying an expectation of consistent dividend payments over the next 12 months.
Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Corebridge Financial Inc stock stands at approximately 5.02% as of today.
Is Corebridge Financial Inc's Dividend Sustainable?
Assessing the sustainability of the dividend requires a close look at the company's payout ratio. The dividend payout ratio sheds light on the proportion 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, Corebridge Financial Inc's dividend payout ratio is 0.23.
Corebridge Financial Inc's profitability rank provides insights into the company's earnings prowess relative to its peers. As of 2023-06-30, the company has a profitability rank of 2 out of 10, suggesting potential challenges in sustaining the dividend. The company has reported net profit in 4 out of the past 10 years.
Corebridge Financial Inc's Growth Metrics
Robust growth metrics are essential for ensuring the sustainability of dividends. However, Corebridge Financial Inc's growth rank of 2 out of 10 suggests subdued growth prospects, casting doubt on the sustainability of its dividend.
Despite this, Corebridge Financial Inc's revenue per share and 3-year revenue growth rate indicate a strong revenue model. The company's revenue has increased by approximately 26.20% per year on average, outperforming approximately 77.09% of global competitors.
The company's 3-year EPS growth rate reflects its ability to grow earnings, a critical factor for sustaining dividends in the long run. Over the past three years, Corebridge Financial Inc's earnings have grown by approximately 444.50% per year on average, outperforming approximately 99.5% of global competitors.
Final Thoughts
While Corebridge Financial Inc's consistent dividend payments and impressive growth in earnings are commendable, its low profitability and growth ranks raise concerns about the sustainability of its dividends. Investors should keep a close eye on these metrics and consider them in their investment decisions.
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