The Insurance Australia Group Ltd (ASX: IAG) dividend is due to hit bank accounts today.
IAG shares have descended 2.31% in the year to date to their current price of $4.62 apiece. In today's trade, the IAG share price is down 0.22%.
For perspective, the S&P/ASX 200 Index (ASX: XJO) is sliding 0.92% in morning trade.
Let's take a look at the details of the IAG dividend.
IAG dividend due to be paid today
IAG investors are due to receive an interim dividend of 6 cents per share today, 30% franked.
Today's interim dividend corresponds to the 6 cents per share dividend paid out in the first half of 2022. However, in H122, the dividend was unfranked.
In the second half of 2022, IAG paid a dividend of 5 cents per share.
IAG reported a net profit after tax (NPAT) of $468 million in the first half of 2023, a 171% boost on the prior corresponding half. This result included a post-tax COVID business interruption provision benefit of $252 million.
The 2023 interim dividend reflects a payout ratio of 68% of NPAT, adjusted to reflect the after-tax business interruption.
This is in line with IAG's dividend policy to pay 60 to 80% of NPAT, excluding the after-tax impact.
Commenting on the H122 results in February, IAG managing director and CEO Nick Hawkins said:
We delivered an improved net profit after tax and reported margin in the first half in challenging economic conditions.
Looking at IAG's dividend history, in the 2022 year, IAG paid total dividends of 11 cents per share, including the 6 cents per share interim dividend and 5 cents per share final dividend.
In FY21, IAG paid total dividends of 20 cents per share.
However, in FY20, amid the COVID-19 outbreak, the company paid an interim dividend of 10 cents per share and did not pay a final dividend.
Back in FY19, IAG paid an interim dividend of 12 cents per share, a final dividend of 20 cents per share, and a special dividend of 5.5 cents per share.
Share price snapshot
The IAG share price rose 1.54% in the last year. However, it has slipped 3.55% in the last month.
For perspective, the ASX 200 has shed 5.64% in the past year.
IAG has a market capitalisation of more than $11 billion based on the current share price.
