Ping An Insurance (Group) Co. of China Ltd. : PNGAY-US: Dividend Analysis : September 01st, 2017 (record date) : By the numbers : September 25, 2017

Our analysis is based on comparing Ping An Insurance (Group) Co. of China Ltd. with the following peers – Manulife Financial Corporation, China Life Insurance Co. Ltd. Sponsored ADR Class H and Prudential plc Sponsored ADR (MFC-US, LFC-US and PUK-US).

Ping An Insurance (Group) Co. of China Ltd.’s dividend yield is 1.55 percent and its dividend payout is 16.74 percent. This compares to a peer average dividend yield of 1.99 percent and a payout level of 35.00 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 3 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 65.75x, 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 June 30, 2017), PNGAY-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 29.05x), investing cash flow (coverage of -44.38x), issuance cash flow (coverage of 8.74x) and twelve-month prior cash (coverage of 60.44x), for a total dividend coverage of 59.53x.

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 (%) 1.92 2.3 2.36 3.04 4.07 1.55
Dividend Payout (%) 15.79 14.06 14.11 14.5 16.11 16.11

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

Company Profile

Ping An Insurance (Group) Co. of China Ltd. engages in the provision of financial products and services. It operates through the following businesses: insurance, banking, and investment segments. Its Insurance segment offers life, property and casualty, pension, and health insurance services. Its banking segment undertakes loan and intermediary business, wealth management, and credit card services. Its Investment segment provides trust, securities, and asset management services. The company was founded by MingZhe Ma on March 21, 1988 and is headquartered in Shenzhen, China.

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