The IAG dividend is hitting bank accounts today. What you need to know

The Insurance Australia Group Ltd (ASX: IAG) dividend should be landing in your bank accounts today.

Despite the ASX being closed due to the Queen of England’s memorial public holiday, the insurance giant went ahead with the dividend payment.

At yesterday’s market close, IAG shares finished at $4.44, down 1.11%.

For context, the S&P/ASX 200 Index (ASX: XJO) was deep in the red ahead of the US Fed Reserve meeting today.

The benchmark index fell 1.56% to 6,700.2 points.

Let’s take a look at what shareholders will be getting from the IAG dividend.

IAG pays out final dividend

On 12 August, IAG reported a relatively mixed performance in its full-year results for the 2022 financial year.

This led the board to declare the smallest dividend for more than a decade, not inducing during COVID-19.

As such, a partially franked final dividend of 5 cents per share will be paid on today to eligible shareholders.

This brings the full-year dividend to 11 cents apiece, which equates to a payout of 78.1% on reported NPAT.

IAG’s dividend policy is to distribute between 60% to 80% of NPAT excluding any after-tax earnings impact.

When calculating against the current share price, IAG is trailing on a dividend yield of 2.47%.

Investors who elected for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This was based on the volume weighted average price from 29 August to 2 September which resulted in $4.64 per share.

No DRP discount rate was offered to shareholders.

IAG share price summary

Whilst moving in circles during recent times, the IAG share price has gained more than 4% in 2022.

When looking at the last 12 months, its shares have travelled the other way to post a loss of 12%.

IAG has a price-to-earnings (P/E) ratio of 33.67 and commands a market capitalisation of roughly $10.95 billion.

The post The IAG dividend is hitting bank accounts today. What you need to know appeared first on The Motley Fool Australia.

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More reading

• IAG shares ‘highest quality’ in the sector: fundie
• Here’s how many IAG shares the company’s executives have been buying in the past 2 weeks
• Why is the next IAG dividend not fully franked?
• Here are the top 10 ASX 200 shares today

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 has positions in 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 Scott Phillips.

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