Our analysis is based on comparing Safety Insurance Group, Inc. with the following peers – Progressive Corporation, Allstate Corporation, Mercury General Corporation, Infinity Property and Casualty Corporation and American International Group, Inc. (PGR-US, ALL-US, MCY-US, IPCC-US and AIG-US).
Safety Insurance Group, Inc.’s dividend yield is 3.12 percent and its dividend payout is 66.35 percent. This compares to a peer median dividend yield of 2.12 percent and a payout level of 58.96 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), SAFT-US paid a low quality dividend, which represents a yield of 4.16% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to March 31, 2017), SAFT-US paid a low 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 2.31x), investing cash flow (coverage of -1.39x), issuance cash flow (coverage of 0x) and twelve-month prior cash (coverage of 0.85x), for a total dividend coverage of 1.76x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||4.75||4.26||4.09||4.93||3.79||3.12|
|Dividend Payout (%)||57.89||60.3||66.5||-301.08||65.57||66.35|
A complete list of metrics and analysis is available on the company page.
Safety Insurance Group, Inc. engages in the management and provision of insurance services. It offers property and casualty insurance products which include commercial vehicles and fleets. The company was founded in 1979 and is headquartered in Boston, MA.
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