International General Insurance Holdings (NASDAQ:IGIC) announced a $0.01.

Opinions of the company International General Insurance Holdings Ltd. (NASDAQ:IGIC) will close by $0.01 on September 20. A dividend yield of 3.4% is still a positive return for shareholders, despite the cut.

View and view all opinions of International General Insurance Holdings Limited in real time

International General Insurance Holdings’ Fees Have Fixed Profits

Impressive yields are great, but that doesn’t matter if the payouts can’t keep up. However, prior to the announcement, International General Insurance Holdings’ share had been well served by both revenue and earnings. As a result, a large portion of the proceeds were returned to the business.

EPS is expected to decline by 0.4% over the next 12 months. If profits continue on their recent trend, we estimate that the margin could be 27%, which we think is very good, and the company has plenty of cash left over for future business expansion.

NasdaqCM:IGIC Historic Dividend August 23rd 2022

International General Insurance Holdings’s dividend is inconsistent

Even in its short history, we have seen a reduction in shares. The total amount distributed went from $0.18 per year in 2020 to the most recent payout of $0.26. This should be a compound annual growth rate (CAGR) of about 20% per year during that time. It’s nice to see strong growth in dividend payouts, but the reduction is concerning because it may indicate that the payout schedule is too demanding.

This sector seems to be growing

Given that the share has been cut in the past, we need to look at whether earnings are growing and whether this could lead to stronger earnings in the future. It is encouraging to note that International General Insurance Holdings has been growing its earnings per share by 40% annually over the past five years. The rapid growth and high payout ratio show that the company has repositioned its business in the right direction. If this continues, this company may have a bright future.

We like International General Insurance Holdings’ Dividend

Overall, we think International General Insurance Holdings could be a good dividend-paying investment, although we’d prefer if the dividend isn’t cut this year. Decreasing the dividend payout can protect the company’s record, and keep profits stable for a long time. When all these factors are considered, we think this has strong potential as a distribution unit.

Investors often prefer companies that have a consistent distribution plan over those that operate irregularly. Meanwhile, despite the importance of dividend payments, it is not the only thing our readers should know when evaluating a company. For example, we have noticed 3 warning signs of International General Insurance Holdings (1 is not fun!) what you need to know before investing. If you are a parts dealer, you may also want to check out ours a list of high yield shares.

This article by Simply Wall St is more general in nature. We provide reviews based on historical data and expert forecasts using unbiased methods and our articles are not intended to be financial advice. It does not make recommendations to buy or sell any stock, and does not take into account your goals, or financial situation. We want to bring you long-term analytics driven by meaningful data. Note that our analysis may not be influenced by recent company announcements or stock prices. Simply Wall St has no position in any of the listed stocks.

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