Understanding Allstate Corp's Dividend Sustainability and Prospects
Allstate Corp (ALL, Financial) recently announced a dividend of $0.92 per share, payable on 2024-04-01, with the ex-dividend date set for 2024-03-01. 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 Allstate Corp's dividend performance and assess its sustainability.
What Does Allstate Corp Do?
Allstate is one of the largest U.S. property and casualty insurers in the U.S. Personal auto represents the largest percentage of revenue, but the company offers homeowners insurance and other insurance products. Allstate products are sold in North America primarily by about 10,000 company agencies.
A Glimpse at Allstate Corp's Dividend History
Allstate Corp has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis.
Allstate Corp has increased its dividend each year since 2009. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Allstate Corp's Dividend Yield and Growth
As of today, Allstate Corp currently has a 12-month trailing dividend yield of 2.21% and a 12-month forward dividend yield of 2.29%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Allstate Corp's annual dividend growth rate was 18.10%. Extended to a five-year horizon, this rate decreased to 16.30% per year. And over the past decade, Allstate Corp's annual dividends per share growth rate stands at an impressive 14.70%.
Based on Allstate Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Allstate Corp stock as of today is approximately 4.70%.
The Sustainability Question: 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. 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 2023-12-31, Allstate Corp's dividend payout ratio is 0.00.
Allstate Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Allstate Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Allstate Corp'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 Allstate Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Allstate Corp's revenue has increased by approximately 17.90% per year on average, a rate that outperforms approximately 85.9% 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, Allstate Corp's earnings decreased by approximately -62.10% per year on average, a rate that outperforms approximately 3.15% of global competitors.
Concluding Insights on Allstate Corp's Dividend Profile
Considering Allstate Corp's consistent dividend history, growing dividend payments, and its ability to maintain a reasonable payout ratio, the company presents an attractive profile for dividend investors. The robust yield on cost further adds to the appeal, indicating that long-term shareholders have enjoyed significant returns on their initial investments. While the earnings growth rate has seen some volatility, the strong revenue growth metrics suggest an underlying strength in Allstate Corp's business model. Investors should weigh these factors, alongside the company's profitability and growth ranks, when making decisions about their portfolios. For those seeking to expand their income-generating assets, Allstate Corp warrants consideration for its dividend potential.
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.
