The Insurance Australia Group Ltd (ASX: IAG) share price has shot up since delivering its FY22 half-year results last Friday.
At yesterday’s market close, IAG shares finished 0.42% higher at $4.74. That means its shares have gained almost 7% in the past week for investors.
In context, the S&P/ASX 200 Index (ASX: XJO) edged 0.51% lower to 7,206.9 points on Tuesday.
What’s the go with the IAG dividend?
In the half-year report for the 2022 financial year, IAG reported a mixed performance across key metrics.
In summary, gross written premium (GWP) lifted by 6.2% to $6,570 million over the previous corresponding period. This was primarily driven by new customer growth and strong retention across motor and home lines in the Australian business.
Insurance profit, however, tumbled by 57.7% to $282 million over H1 FY21. The sharp fall was attributed to significant natural peril costs largely from severe weather events in October.
Overall, net profit after tax (NPAT) rose to $173 million, compared to a loss of $460 million in the prior year.
Based on IAG’s cash earnings of $176 million, the IAG Board declared an unfranked interim dividend of 6 cents per share. This represents a 14.2% decline from the 7 cents declared in the prior comparable period.
Management noted that the latest dividend equates to a payout ratio of 84% of cash earnings.
The company’s dividend policy is to distribute 60%-80% of cash earnings in any full financial year.
When can IAG shareholders expect payment?
IAG will pay the interim dividend to eligible shareholders next month on 24 March.
However, to be eligible, you’ll need to own IAG shares before the ex-dividend date which is today, 16 February. This means if you want to secure the dividend, you will need to purchase IAG shares by today at the latest.
In addition, the company is offering a dividend reinvestment plan (DRP), with the election date falling on 18 February.
The issue price per share will be the average market price, with no discount for participants. Shares allocated under the DRP are likely to be purchased on-market.
The post Here’s everything you need to know about the IAG (ASX:IAG) dividend appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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