AEGON NV : AEG-US: Dividend Analysis : August 21st, 2017 (record date) : By the numbers : September 18, 2017

Our analysis is based on comparing AEGON NV with the following peers – Lincoln National Corporation, MetLife, Inc. and Prudential plc Sponsored ADR (LNC-US, MET-US and PUK-US).

AEGON NV’s dividend yield is 4.47 percent and its dividend payout is 71.04 percent. This compares to a peer median dividend yield of 2.89 percent and a payout level of 63.52 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 67 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), AEG-US paid a medium quality dividend, which represents a yield of 4.38% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 4 of these years — of these 2 were high quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 34.95x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), AEG-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of -4.28x), investing cash flow (coverage of -4.52x), issuance cash flow (coverage of 11.13x) and twelve-month prior cash (coverage of 35.82x), for a total dividend coverage of 35.95x.

AEG-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -1.38x). Thus, the total coverage including share buybacks is 37.33x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 2.11 2.17 2.63 2.93 4.47
Dividend Payout (%) 25.58 64.85 37.77 96.43 105.66 71.04

A complete list of metrics and analysis is available on the company page.

Company Profile

AEGON NV is a holding company, which engages in the provision of insurance, pensions, and asset management services. It operates through the following segments: Americas, Europe, Asia, Asset Management, and Holding and Other Activities. The Americas segment covers business units in the United States, Brazil, and Mexico, including any of the units’ activities located outside these countries. The Europe segment comprises of the operating segments of the Netherlands, United Kingdom, Central and Easter Europe, and Spain and Portugal. The Asia segment consists of Hong Kong, Singapore, China, Japan, India, and Indonesia including any of the units’ activities located outside these countries. The Asset Management segment includes the activities from Aegon Asset Management. The Holding and Other Activities segment composes of financing, reinsurance activities, employee, and other administrative expenses of holding companies. The company was founded in 1983 and is headquartered in The Hague, Netherlands.


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