Lincoln National Corp's Dividend Analysis
Understanding the Dividend Profile of Lincoln National Corp (NYSE:LNC)
Lincoln National Corp (NYSE:LNC) recently announced a dividend of $0.45 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-09. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Lincoln National Corp's dividend performance and assess its sustainability.
What Does Lincoln National Corp Do?
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Lincoln National Corp operates multiple insurance and retirement businesses. The company's operating segments include Annuities; Retirement Plan Services; Life Insurance and Group Protection. Its products primarily include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL and VUL, indexed universal life insurance (IUL), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental.
A Glimpse at Lincoln National Corp's Dividend History
Lincoln National Corp has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis. Lincoln National Corp has increased its dividend each year since 2009. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Lincoln National Corp's Dividend Yield and Growth
As of today, Lincoln National Corp currently has a 12-month trailing dividend yield of 6.40% and a 12-month forward dividend yield of 6.40%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Lincoln National Corp's annual dividend growth rate was 6.00%. Extended to a five-year horizon, this rate increased to 8.30% per year. And over the past decade, Lincoln National Corp's annual dividends per share growth rate stands at an impressive 16.50%.
Based on Lincoln National Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Lincoln National Corp stock as of today is approximately 9.54%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Lincoln National Corp's dividend payout ratio is 0.00.