F&G Annuities & Life, Inc. (NYSE:FG) Goes Ex-Dividend Soon

F&G Annuities & Life, Inc. (NYSE:FG) stock is about to trade ex-dividend in 2 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase F&G Annuities & Life's shares on or after the 14th of December will not receive the dividend, which will be paid on the 29th of December.

The company's next dividend payment will be US$0.21 per share, and in the last 12 months, the company paid a total of US$0.84 per share. Based on the last year's worth of payments, F&G Annuities & Life stock has a trailing yield of around 1.9% on the current share price of $43.84. If you buy this business for its dividend, you should have an idea of whether F&G Annuities & Life's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for F&G Annuities & Life

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. F&G Annuities & Life reported a loss after tax last year, which means it's paying a dividend despite being unprofitable. While this might be a one-off event, this is unlikely to be sustainable in the long term.

Click here to see how much of its profit F&G Annuities & Life paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. F&G Annuities & Life reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Unfortunately F&G Annuities & Life has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

Get our latest analysis on F&G Annuities & Life's balance sheet health here.

To Sum It Up

Is F&G Annuities & Life worth buying for its dividend? It's not great to see the company paying a dividend despite being loss-making over the last year. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

If you want to look further into F&G Annuities & Life, it's worth knowing the risks this business faces. Our analysis shows 1 warning sign for F&G Annuities & Life and you should be aware of it before buying any shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.