Understanding Admiral Dividend Yield and Its Implications

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The Admiral Dividend Yield is a financial metric that can be a bit confusing, but it's actually quite straightforward. It's the ratio of the annual dividend payment per share to the stock's current price.

This metric is important because it helps investors understand the potential return on investment for a given stock. For example, if a stock has a dividend yield of 4%, it means that for every $100 invested, the investor can expect to receive $4 in dividend payments annually.

A higher dividend yield can be attractive to income-seeking investors, but it's essential to consider other factors, such as the stock's overall performance and the company's financial health. As we'll discuss later, a dividend yield that's too high can sometimes be a sign of underlying issues.

Performance Metrics

When evaluating an Admiral dividend yield, it's essential to consider the performance metrics that indicate its potential for growth.

The dividend yield is a key metric, which is calculated by dividing the annual dividend payment by the stock's current price.

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A higher dividend yield can be attractive to income investors, but it's essential to consider the company's ability to sustain its dividend payments.

According to Admiral's financial statements, the company has consistently paid out a significant portion of its earnings as dividends, indicating a strong commitment to its dividend policy.

Past Performance

The mean historical Dividend Yield of Admiral Group plc over the last ten years is 6.34%. This is a significant figure that gives us a sense of the company's past performance.

In the past decade, the current Dividend Yield of 2.43% has changed by -61.73% with respect to the historical average. This shows that the company's Dividend Yield has been volatile over the years.

The highest Dividend Yield in the past ten years was 5.18%, which was recorded in the June 2022 quarter. This is a notable peak that investors may want to keep in mind.

At its lowest, the Dividend Yield was 0%, which occurred in the December 2004 quarter. This is an important reminder that even established companies can experience fluctuations in their Dividend Yield.

Average

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The average Dividend Yield of Admiral Group plc over the last ten years is 6.34%. This is significantly higher than the current Dividend Yield of 2.43%.

The current Dividend Yield is less than its 3-year, 5-year, and 10-year historical averages. This suggests a downward trend in the company's dividend yield over time.

The current Dividend Yield of Admiral Group plc is also less than its peers, including Bunzl plc, Schroders plc, Direct Line Insurance Group plc, Associated British Foods plc, and Antofagasta plc.

Here's a comparison of the current Dividend Yield of Admiral Group plc with its peers:

The highest Dividend Yield of Admiral Group plc in the past ten years was 5.18% in the June 2022 quarter.

Market vs. Yield

When evaluating ADM's performance, it's essential to consider its dividend yield in relation to the market. ADM's dividend yield of 4.7% is higher than the bottom 25% of dividend payers in the UK market, which stands at 2.1%.

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The top 25% of dividend payers in the UK market boasts a significantly higher yield of 5.9%. This indicates that ADM's dividend yield is relatively low compared to its peers in the top segment.

ADM's dividend yield is also lower than the industry average of 5.2% for insurance companies. This suggests that while ADM's dividend yield is higher than some market segments, it still lags behind the industry average.

Here's a comparison of ADM's dividend yield with various market segments:

Investment Analysis

Admiral Group is a dividend paying company with a current yield of 4.65%.

The dividend yield is a significant aspect of Admiral Group's investment appeal. It's a clear indication that the company is committed to returning value to its shareholders.

Admiral Group's dividend yield is well covered by earnings, which is a crucial factor to consider for investors.

Group Plc (ADM.L)

Admiral Group plc (ADM.L) is a company that's definitely worth taking a closer look at. With a dividend yield that's fluctuated between 3.77% and 10.26% over the years, investors should be aware of the potential risks and rewards.

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The company's dividend yield has increased by as much as 54.35% in some years, which is a significant jump. However, it's also decreased by as much as 63.28% in other years, which is a cause for concern.

One of the key factors to consider is the company's earnings coverage. With a payout ratio of 66.1%, ADM's dividend payments are covered by earnings, which is a good sign.

Here's a breakdown of Admiral Group plc's dividend yield by year:

As you can see, the company's dividend yield has been all over the place. However, it's also worth noting that the company has been paying dividends for 25 years, which is a testament to its stability.

Overall, Admiral Group plc (ADM.L) is a company that's definitely worth considering for investors looking for a dividend-paying stock.

Criteria Checks 3/6

Let's take a closer look at the dividend criteria checks.

A dividend paying company with a current yield of 4.65% is a good starting point. This means investors can expect a relatively high return on their investment.

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Admiral Group's dividend payments are well covered by earnings, which is a crucial factor to consider. A reasonable payout ratio is essential to ensure the company can sustain its dividend payments.

The payout ratio is a key metric to evaluate a company's dividend sustainability. For Admiral Group, the payout ratio is 66%, which is relatively high. However, it's essential to note that a payout ratio of 66% is still considered reasonable.

Here are some key metrics to consider when evaluating Admiral Group's dividend:

It's worth noting that a dividend yield of 4.65% is relatively high, making Admiral Group an attractive option for income-seeking investors.

vs. Peers

Admiral's dividend yield is attractive compared to its peers.

The company has a dividend yield of 4.5%, which is higher than the average dividend yield of 3.5% for the Financials sector.

Admiral's dividend yield is also higher than that of its competitors, such as Direct Line, which has a dividend yield of 3.1%.

This suggests that Admiral is offering a more attractive return to investors in the form of dividends.

In fact, Admiral's dividend yield is among the highest in the industry, making it an attractive option for income-seeking investors.

Frequently Asked Questions

How often does Admiral pay dividends?

Admiral Group PLC pays dividends twice a year. Dividend payments are made in June and October.

Which is the highest paying dividend?

The highest paying dividend is offered by Xchanging Solutions with a dividend yield of 15.1%. This makes it an attractive option for investors seeking high returns.

Angie Ernser

Senior Writer

Angie Ernser is a seasoned writer with a deep interest in financial markets. Her expertise lies in municipal bond investments, where she provides clear and insightful analysis to help readers understand the complexities of municipal bond markets. Ernser's articles are known for their clarity and practical advice, making them a valuable resource for both novice and experienced investors.

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