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Global Indemnity Group LLC (NYSE:GBLI) announced that it will increase its regular dividend to $0.35 on March 28th. This is a 40% increase over last year’s equivalent payment of $0.25. This gives the company an attractive dividend yield of 3.4%, which is a huge boost to shareholder returns.
Check out our latest analysis for Global Indemnity Group.
Global Indemnity Group’s dividend is well covered by profit.
Even if you can maintain a high dividend yield for several years, it doesn’t mean much if you can’t maintain it. The last dividend was easily covered by Global Indemnity Group’s earnings. This means that a large portion of the revenue is retained for business growth.
Looking ahead, earnings per share are expected to grow by 31.6% over the next year. If dividends continue in line with recent trends, the dividend payout ratio is expected to be 56%, which is within a range that is fully satisfactory in terms of dividend sustainability.
Global Indemnity Group does not have a long payment history
The company has been paying a stable dividend for some time, but we think it will take a few more years before we can safely rely on it. There has been no significant change in dividends over the past six years. It’s good that the dividend hasn’t decreased. However, we think we are cautious about relying on dividend income as the company does not have a very long dividend history yet.
Dividends are likely to increase
Investors in the company will be happy to receive dividend income for some time to come. We’re pleased to see that Global Indemnity Group has grown its earnings per share at 40% per year over the past five years. We believe Global Indemnity Group has the potential to be a strong dividend payer, as the company’s earnings per share have grown rapidly in recent years and it has a good balance between reinvestment and dividends to shareholders. Masu.
We really like Global Indemnity Group’s dividend
Overall, growing dividends is always a good thing, and we think Global Indemnity Group is a strong income stock due to its track record and earnings growth. Profits easily cover distributions, and the company generates a lot of cash. Overall, this ticks a lot of boxes that we look for when choosing income stocks.
Market movements prove how highly valued a consistent dividend policy is compared to a more unpredictable dividend policy. At the same time, there are other factors that readers should be aware of before pouring capital into stocks. For example, we chose 1 warning sign for Global Indemnity Group Here’s what investors should know before putting money into this stock.Looking for more high-yield dividend ideas? Try ours A group of people with strong dividends.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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