Global Indemnity Group (NYSE:GBLI) Is Paying Out A Dividend Of $0.25

The board of Global Indemnity Group, LLC (NYSE:GBLI) has announced that it will pay a dividend of $0.25 per share on the 29th of December. This makes the dividend yield 3.6%, which will augment investor returns quite nicely.

Check out our latest analysis for Global Indemnity Group

Global Indemnity Group's Payment Has Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. The last dividend was quite easily covered by Global Indemnity Group's earnings. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 31.6%. Assuming the dividend continues along recent trends, we think the payout ratio could be 51% by next year, which is in a pretty sustainable range.

Global Indemnity Group Doesn't Have A Long Payment History

It is great to see that Global Indemnity Group has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. There hasn't been much of a change in the dividend over the last 6 years. Global Indemnity Group hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Global Indemnity Group has seen EPS rising for the last five years, at 40% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that Global Indemnity Group could prove to be a strong dividend payer.

Global Indemnity Group Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Global Indemnity Group might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Global Indemnity Group that investors should take into consideration. Is Global Indemnity Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.