Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, including dividends, which are a significant component of long-term returns [1][2] Company Overview - Everest Group (EG) is headquartered in Hamilton and has experienced a price change of -3.73% this year [3] - The company currently pays a dividend of $2.00 per share, resulting in a dividend yield of 2.29%, which is higher than the Insurance - Multi line industry's yield of 1.72% and the S&P 500's yield of 1.49% [3] Dividend Performance - The current annualized dividend of Everest Group is $8.00, reflecting a 3.2% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend twice on a year-over-year basis, with an average annual increase of 11.66% [4] - The current payout ratio is 40%, indicating that the company pays out 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Everest Group anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $49.76 per share, representing a year-over-year earnings growth rate of 66.81% [5] Investment Considerations - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [6] - Everest Group is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]
Everest Group (EG) Could Be a Great Choice