Analyzing Assurant’s Dividend Yield
Assurant’s dividend yield
Assurant’s (AIZ) 48% dividend per share growth has been followed by 4% growth in 2017. Its stock price has risen 7.8% YTD (year-to-date), compared with 15% growth in 2016, which explains the recent flattening of its dividend yield curve. Whereas constant innovation has created new risks in every domain, high tax rates have been a disincentive for US companies. Financial deregulation and new tax policies could create a plethora of opportunities for the industry.
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Assurant versus broad indexes
Assurant has a PE (price-to-earnings) ratio of 11x and a dividend yield of 2.1%, whereas the sector has an average PE ratio of 52.4x and a dividend yield of 1.8%. The S&P 500 (SPX-INDEX) (SPY) offers a dividend yield of 2.3%, PE ratio of 22.6x, and YTD return of 15.6%. The Dow Jones Industrial Average (DJIA) (DIA) has a dividend yield of 2.3%, PE ratio of 21.1x, and YTD return of 19.1%. The NASDAQ (COMP-INDEX) (ONEQ) has a PE ratio of 25.3x and YTD return of 25.7%.
The WisdomTree US MidCap Dividend ETF (DON) is a dividend fund with 9% exposure to financials. It has a 2.4% dividend yield and a PE ratio of 23.6x. Meanwhile, the Global X SuperDividend US ETF (DIV) has 2% exposure to financials, a 6.1% dividend yield, and a PE ratio of 15x.