Be Sure To Check Out Corebridge Financial, Inc. (NYSE:CRBG) Before It Goes Ex-Dividend
Readers hoping to buy Corebridge Financial, Inc. (NYSE:CRBG) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. This means that investors who purchase Corebridge Financial's shares on or after the 16th of September will not receive the dividend, which will be paid on the 30th of September.
The company's next dividend payment will be US$0.25 per share. Last year, in total, the company distributed US$1.00 to shareholders. Last year's total dividend payments show that Corebridge Financial has a trailing yield of 2.9% on the current share price of US$34.18. If you buy this business for its dividend, you should have an idea of whether Corebridge Financial's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Corebridge Financial is paying out an acceptable 54% of its profit, a common payout level among most companies.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Check out our latest analysis for Corebridge Financial
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Corebridge Financial's earnings per share have risen 15% per annum over the last five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past four years, Corebridge Financial has increased its dividend at approximately 2.1% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Corebridge Financial is keeping back more of its profits to grow the business.
The Bottom Line
From a dividend perspective, should investors buy or avoid Corebridge Financial? Earnings per share are growing at an attractive rate, and Corebridge Financial is paying out a bit over half its profits. Overall, Corebridge Financial looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
So while Corebridge Financial looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To that end, you should learn about the 2 warning signs we've spotted with Corebridge Financial (including 1 which is significant).
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.