At the time of writing, IAG shares are nudging 0.76% higher to $4.645 while the S&P/ASX 200 Index (ASX: XJO) heads south.
The ASX 200 benchmark index is down by 0.73% after a choppy session on Wall Street overnight.
Let’s take a look at how the company performed for the period and the details surrounding its latest dividend.
How did IAG perform in FY22?
For the 12 months ending 30 June 2022, IAG reported a mixed bag across key financial metrics.
In summary, gross written premium (GWP) lifted by 5.7% to $13.31 billion over the previous corresponding period. This was primarily driven by an improved underlying business performance despite challenging an external environment due to natural perils claims and volatile investment markets.
The underlying insurance margin stood at 14.6% compared to 14.7% in FY21. This was affected by positive benefits from COVID impacts on motor frequency and negative timing impact from increasing risk-free interest rates.
Overall, net profit after tax (NPAT) jumped to $347 million, compared to a loss of $427 million in the prior year.
And the dividend?
Based on IAG’s cash earnings of $213 million, the IAG Board declared a 70% franked final dividend of 5 cents per share. This represents a 62% decline from the unfranked 13 cents declared in the prior comparable period.
The full year dividend equates to a payout ratio of 78.1% of cash earnings. This is within the top end range of the company’s dividend policy to distribute between 60% to 80% of its cash earnings.
The IAG dividend will be paid to eligible shareholders next month on 22 September.
However, to be eligible, you’ll need to own IAG shares before the ex-dividend date which falls on 18 August. This means if you want to secure the dividend, you will need to purchase IAG shares next Wednesday at the latest.
In addition, the company has a dividend reinvestment plan (DRP), with the last date to opt in by 22 August.
The issue price per share will be the average market price between 29 August and 2 September.
There is no discount that will be applied to those who participate in the DRP.
Source: Read More