Latest news with #AegonLtd
Yahoo
3 days ago
- Business
- Yahoo
Why It Might Not Make Sense To Buy Aegon Ltd. (AMS:AGN) For Its Upcoming Dividend
It looks like Aegon Ltd. (AMS:AGN) is about to go ex-dividend in the next four days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. This means that investors who purchase Aegon's shares on or after the 16th of June will not receive the dividend, which will be paid on the 7th of July. The company's next dividend payment will be €0.19 per share, on the back of last year when the company paid a total of €0.38 to shareholders. Based on the last year's worth of payments, Aegon stock has a trailing yield of around 6.0% on the current share price of €6.31. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Last year, Aegon paid out 94% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business. When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut. View our latest analysis for Aegon Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Aegon's earnings per share have fallen at approximately 11% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Aegon has delivered an average of 5.6% per year annual increase in its dividend, based on the past 10 years of dividend payments. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Aegon is already paying out 94% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Is Aegon worth buying for its dividend? Earnings per share are in decline and Aegon is paying out what we feel is an uncomfortably high percentage of its profit as dividends. It's not that we hate the business, but we feel that these characeristics are not desirable for investors seeking a reliable dividend stock to own for the long term. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend. With that in mind though, if the poor dividend characteristics of Aegon don't faze you, it's worth being mindful of the risks involved with this business. Every company has risks, and we've spotted 1 warning sign for Aegon you should know about. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-03-2025
- Business
- Yahoo
The 5.4% return this week takes Aegon's (AMS:AGN) shareholders five-year gains to 213%
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the Aegon Ltd. (AMS:AGN) share price has soared 152% in the last half decade. Most would be very happy with that. In the last week the share price is up 5.4%. Since the stock has added €499m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, Aegon actually saw its EPS drop 32% per year. This means it's unlikely the market is judging the company based on earnings growth. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. In fact, the dividend has increased over time, which is a positive. Maybe dividend investors have helped support the share price. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Aegon's TSR for the last 5 years was 213%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! It's nice to see that Aegon shareholders have received a total shareholder return of 19% over the last year. That's including the dividend. However, that falls short of the 26% TSR per annum it has made for shareholders, each year, over five years. It's always interesting to track share price performance over the longer term. But to understand Aegon better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Aegon you should be aware of. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Dutch exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
