Münchener Rückversicherungs-Gesellschaft in München (ETR:MUV2) Is Increasing Its Dividend To €20.00

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (ETR:MUV2) will increase its dividend on the 6th of May to €20.00, which is 33% higher than last year's payment from the same period of €15.00. This takes the annual payment to 2.5% of the current stock price, which unfortunately is below what the industry is paying.

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Münchener Rückversicherungs-Gesellschaft in München's Projected Earnings Seem Likely To Cover Future Distributions

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. The last dividend was quite easily covered by Münchener Rückversicherungs-Gesellschaft in München's earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.

Over the next year, EPS is forecast to expand by 23.3%. If the dividend continues along recent trends, we estimate the payout ratio will be 40%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Münchener Rückversicherungs-Gesellschaft in München

Münchener Rückversicherungs-Gesellschaft in München Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was €7.75 in 2015, and the most recent fiscal year payment was €15.00. This means that it has been growing its distributions at 6.8% per annum over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. Münchener Rückversicherungs-Gesellschaft in München has impressed us by growing EPS at 18% per year over the past five years. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

We Really Like Münchener Rückversicherungs-Gesellschaft in München's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 11 analysts we track are forecasting for Münchener Rückversicherungs-Gesellschaft in München for free with public analyst estimates for the company. Is Münchener Rückversicherungs-Gesellschaft in München not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This 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.