Challenger Dividend yield




   AUD/share 
 Price  6.75
 Dividend  0.22
 Earnings  0.89
 Cash-flow  3.75
 Book value  5.63
 Equity  5.27

Challenger is part of Life Insurance business, which is part of Financials industry. Challenger is a company from Australia, and his stocks are publicly traded.

Challenger paid a total dividend of 149 million AUD last year, for a market value of 4,563 millions (Market Cap 4,523 millions). Dividend per share of Challenger is 0.22 AUD, and his stock market price 6.75 AUD.

According to the chart below, where dividend yield is displayed, Challenger has a dividend yield of 3.26%, which is similar to the amount offered by both the market average and companies from Australia. However, it is lower than the average of Financials industry. The company should be deeply analized because dividend yields should be similar among companies from the same industry unless they carry an opposite strategy.

In addition, you should compare Challenger dividend yield with other Life Insurance companies or firms from Australia.

Dividend yield of Challenger

Challenger Dividend Payout

About the ability of Challenger to maintain his current dividend of AUD 0.22 per share, an amount that accounts for 3.26%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Challenger payout on ernings is currently 24.72%, which is lower than the market average and companies of Financials industry, which are 38.25% and 41.38% respectively. Both figures lead us to believe that there is confidence that Challengercan maintain his current dividend.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Challenger is AUD 3.75 per share, which is higher than the dividend per share paid by the company of AUD 0.22, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Challenger, compared againt world market average, Australia companies, Financials industry and Life Insurance sector companies.

Challenger payout

Challenger Dividend History

Year Yield  AUD  Paypout  Shares* 
Present3.26%0.2224.72%676
20213.06%0.2022.73%676
20205.51%0.35-57.38%676
20194.39%0.3670.59%612
20183.74%0.3564.81%611
20172.46%0.3553.03%610
20163.05%0.3255.17%570
20153.55%0.3056.60%570

*In millions

Challenger Stock performance

Finally, last moth Challenger showed a return of 0.00% compared to a worldwide 1.12% average, and a 1.75% of Financials firms. Over the last year, the company obtained a 5.50% versus a worldwide performance of a 5.73%. More detailed information can be seen in the following graph for Australia and Life Insurance firms.

Challenger stock and market return