Read this before buying QBE Insurance Group Ltd for its dividend

The QBE Insurance Group Ltd (ASX: QBE) share price dropped 2.6% yesterday, but if you’ve been thinking of buying shares in the global insurance provider for its juicy divided there are a few things you need to know.

The first is that QBE shares will go ex-dividend on Thursday, March 7, 2019.  This is the date when shares start selling without the value of its next dividend payment.

An investor needs to own the shares before the ex-date to receive the dividend which will be paid on Thursday, April 18, 2019.

What is QBE Insurance Group’s dividend yield?

At its recent full-year results, QBE declared a dividend of 28 cents per share (cps) for the half year. This was up substantially on the 4 cps dividend declared in the prior corresponding period and at the current share price QBE offers a trailing dividend yield of 4%, partially franked.

Is the QBE dividend sustainable going forward?

This is a great question to ask before buying any company for its dividend.

Last month QBE presented a net profit after tax (NPAT) of US$390 million for the 12 months to 31 December 2018, a sharp turnaround from the US$1.25 billion loss in the prior year, supported by lower catastrophe claims and the dumping of underperforming operations.

The profit was pleasing to see after years of underperformance for investors.

The simplification strategy and improvement in QBE’s operating margins is a promising sign for dividends going forward. However, it is curious to see that despite the positive reported cash profit, net cash flows from operations was negative for the year. This is something I will definitely be keeping my eye on.

Foolish Takeaway

I am forever wary of QBE after years of disappointing results in a highly competitive industry, but it does look like the company has managed to jettison its dead-weight to become sharper and more focused. Baring new catastrophes this should help to increase, or at a minimum maintain, cash returns for investors going forward.

Fortunately, there are several other big companies going ex-dividend on 07 March for income investors to consider, including:

When it comes to picking strong, high yielding businesses to supplement your income though, we think this company should be at the top of your watch-list today.

OUR #1 dividend pick to grow your wealth in 2019 is revealed for FREE here!

Our top dividend stock pick for 2019 currently boasts a 5.4% dividend yield (fully franked). I believe it’s a perfect fit for a well-diversified, income-focused portfolio.

Even better, this yield comes attached to an attractive and still-growing business which could keep expanding throughout Australia and New Zealand for years to come. With disciplined management, and a long track record of building wealth for shareholders, this company is a serious candidate for any income-minded investor’s portfolio.

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Regan Pearson has no position in any of the stocks mentioned.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!