Four Days Left To Buy The Travelers Companies, Inc. (NYSE:TRV) Before The Ex-Dividend Date
NYSE:TRV) stock is about to trade ex-dividend in 4 days. You can purchase shares before the 9th of September in order to receive the dividend, which the company will pay on the 30th of September.” data-reactid=”28″>The Travelers Companies, Inc. (NYSE:TRV) stock is about to trade ex-dividend in 4 days. You can purchase shares before the 9th of September in order to receive the dividend, which the company will pay on the 30th of September.
Travelers Companies’s next dividend payment will be US$0.85 per share. Last year, in total, the company distributed US$3.40 to shareholders. Last year’s total dividend payments show that Travelers Companies has a trailing yield of 2.9% on the current share price of $115.35. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it’s growing.
Check out our latest analysis for Travelers Companies ” data-reactid=”30″> Check out our latest analysis for Travelers Companies
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That’s why it’s good to see Travelers Companies paying out a modest 47% of its earnings.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
here to see the company’s payout ratio, plus analyst estimates of its future dividends.” data-reactid=”37″>Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Travelers Companies’s earnings per share have fallen at approximately 8.1% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
Many investors will assess a company’s dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Travelers Companies has increased its dividend at approximately 9.9% a year on average.
The Bottom Line
Has Travelers Companies got what it takes to maintain its dividend payments? Travelers Companies’s earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We’re unconvinced on the company’s merits, and think there might be better opportunities out there.
1 warning sign for Travelers Companies that you should be aware of before investing in their shares.” data-reactid=”55″>If you want to look further into Travelers Companies, it’s worth knowing the risks this business faces. To help with this, we’ve discovered 1 warning sign for Travelers Companies that you should be aware of before investing in their shares.
a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.” data-reactid=”56″>A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. 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.
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