Will Munich Re's dividend really increase that much in 2024? - Find out through in-depth analysis!

Will Munich Re's dividend really increase that much in 2024? - Find out through in-depth analysis!

According to a report by www.aktienwelt360.de,

Munich Re's (WKN: 843002) dividend could potentially rise sharply in 2024. Management has forecast that profits could rise to 4.5 billion euros in 2023. Mathematically, this could lead to a significant increase in the dividend. Management has stated that the dividend should increase by at least 5% in “normal” years, and at least not be reduced in years with particularly high claims burdens.

In purely mathematical terms, with a profit of 4.5 billion euros, earnings per share could be 30.78 euros. Assuming that Munich Re increases the dividend per share by around 25%, the distribution amount per share could rise to 14.50 euros, which would result in a dividend yield of 3.7%.

My analysis shows that Munich Re is likely to increase its dividend by between 5% and 25%. Due to strong dividend growth and a moderate payout ratio, the dividend is likely to increase significantly. This could make the stock much more interesting for income investors again. However, the exact amount of the dividend remains a surprise. The dividend increase in 2024 will set a benchmark against which the dividend must also be measured in the coming years.

It remains to be seen how Munich Re will structure its dividend due to the strong profit growth. A dividend yield of 3.7% could be possible, making the stock more attractive. In terms of future dividend policy and the impact on the market and investors, this is definitely a key factor to watch closely.