ASX 200 dividend stock Insurance Australia Group Ltd (ASX: IAG) hit a new 52-week share price high on Friday.
The IAG share price rose to $6.10 in earlier trading before moving back to $6.08 at the time of writing.
And in more good news for investors, this ASX 200 dividend stock is tipped to pay twice as much passive income this year.
With the first earnings season of the new year upon us, investors are curiously awaiting the half-year results of many ASX shares.
The results will, of course, include interim dividend announcements, which are of particular importance to income investors.
So, what will IAG pay in 2024?
ASX 200 dividend stock hits 52-week high on Friday
The consensus forecast published on CommSec today shows that the analysts expect IAG shares to pay a total annual dividend of 27 cents in 2024.
That's almost twice the 15 cents per share paid in 2023.
Based on the IAG share price of $6.10 today, the forecast dividend of 27 cents represents a 4.43% dividend yield. And there will be franking credits on top. (Last year IAG dividends had 30% franking.)
The analysts are also tipping IAG's dividends to rise to 30 cents per share in 2025 and 31 cents per share in 2026.
The IAG share price has lifted 26% over the past 12 months. Many ASX insurance shares have fared well during the recent period of high inflation, which allowed insurers to raise their premiums.
Last year, IAG shares were among the ASX stocks with the biggest profit jumps of FY23 and the best dividend upgrades.
IAG is due to report its half-year 2024 results and interim dividend on 16 February.
What will IAG report?
Top broker Goldman Sachs is forecasting $628 million in insurance profits and $442 million in cash earnings. It expects an underlying insurance margin (ex-reinsurance reinstatement) of 15.1%.
The broker is tipping that the ASX 200 dividend stock will pay an interim dividend of 12.9 cents per share.
In a recent note, Goldman commented:
We await an update from IAG on rate trends across their portfolio which we think remains strong but likely to see some moderation into 2H24+.
We think IAG continues to be near the top of the market on rate as part of its strategy to repair margins (post inflation pressures) with rates remaining strong through most of 1H24 in our view across Direct (~mid/high teens), Commercial (~8-10%) and also very strong in NZ
We await any comments from IAG on competition including affordability pressures which is likely to put pressure on rate particularly as input cost pressures now moderate (inflation / reinsurance pressures).
Goldman has a neutral rating on IAG with a 12-month share price target of $6.
The consensus rating among 11 analysts on CommSec is a moderate buy for this ASX 200 dividend stock.
