Investing in dividend stocks such as SAFT is popular with the first-time and seasoned investor alike as it offers quite a few benefits. It can help you reach your long-term financial goals as well as offer the possibility of steady income compounding returns.
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There is a difference between the dividend stocks available but those of companies like Safety Insurance Group, Inc. (NASDAQ:SAFT) are considered financially stable as the SAFT stock price has been steadily increasing over time. Naturally, when you invest in Stock SAFT, you need to be patient and remain disciplined as you wait for the dividend stock investing to provide stable income over time.
Historically, Safety Insurance Group, Inc. (NASDAQ:SAFT) has always paid a dividend to shareholders. It currently yields 3.6%. But there is a reason why now is the ideal time to include the safety insurance stock in your portfolio.
Past Performance and Future Outlook
Currently, the trailing twelve-month payout ratio for the SAFT stock is 58%. This means the dividend is covered by the company’s earnings. Furthermore, financial analysts have not forecasted a dividends per share for the future. Because of this, it will be a bit difficult to determine the yield shareholders should expect, but the past performance has shown consistent results, which means that it’s reasonable to believe that the current payout is sustainable, moving forward.
The cash flow of Safety Insurance Group also contributes to the sustainability of the SAFT stock’s dividends. The company has increased its DPS from $1.6 to $3.2 in the past decade. During the same period it has not missed a payment – something typical for companies increasing their dividend. These are all positive signs that the safety insurance stock is a great, reliable dividend stock.
Safety Insurance Group generates a yield of 3.6% compared to its peers,, which is high for Insurance stocks but still below the market’s top dividend payers.
These dividend metrics are a clear indication that the Safety Insurance Group stock a strong performer. If you considers dividends an important part of your portfolio strategy, the SAFT stock is worth looking into. Any interested investor should look beyond the initial dividend analysis and take the time to understand the company’s core business and determine whether its investment properties suit your overall goals.
The overall analysis of Safety Insurance Growth shows the company has delivered over 20% year on year earnings growth in the past 5 years. In fact, its 1- -year earnings growth exceeds its 5-year average (58.2% vs 24.4%), which is good news for the value of the Safety Insurance Group stock. If you’re considering whether to invest in stock SAFT, it is worth noting that the company’s cash and other short term assets cover its long term commitments therefore coverage of interest payments is not a concern.. Another factor that contributes to the positive outlook of the SAFT stock is the fact that Safety Insurance Group’s earnings growth has exceeded the US Insurance industry average in the past year (58.2% vs 2%).
Since Safety Insurance Group’s pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%), you can expect healthy gains if you invest in stock SAFT.