Zavarovalnica Triglav d.d (LJSE:ZVTG) Will Pay A Larger Dividend Than Last Year At €2.80

Zavarovalnica Triglav, d.d. (LJSE:ZVTG) will increase its dividend on the 18th of June to €2.80, which is 60% higher than last year's payment from the same period of €1.75. This takes the annual payment to 3.8% of the current stock price, which is about average for the industry.

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Zavarovalnica Triglav d.d's Projected Earnings Seem Likely To Cover Future Distributions

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last dividend was quite easily covered by Zavarovalnica Triglav d.d's earnings. This indicates that quite a large proportion of earnings is being invested back into the business.

If the trend of the last few years continues, EPS will grow by 9.5% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 45%, which is in the range that makes us comfortable with the sustainability of the dividend.

View our latest analysis for Zavarovalnica Triglav d.d

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was €1.70 in 2015, and the most recent fiscal year payment was €1.75. Its dividends have grown at less than 1% per annum over this time frame. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited.

Zavarovalnica Triglav d.d Could Grow Its Dividend

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Zavarovalnica Triglav d.d has seen EPS rising for the last five years, at 9.5% per annum. The lack of cash flows does make us a bit cautious though, especially when it comes to the future of the dividend.

We Really Like Zavarovalnica Triglav d.d'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. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 2 warning signs for Zavarovalnica Triglav d.d you should be aware of, and 1 of them is significant. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.