Everything you need to know about the Suncorp dividend

Suncorp announced its final FY23 dividend payment this morning.

| More on:
A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Suncorp Group Ltd (ASX: SUN) reported its full financial year (FY23) results today, including its final dividend payout.

Among the highlights of those results, Suncorp reported a 69% increase in FY23 net profit after tax (NPAT), which came in at $1.15 billion.

Cash earnings increased to $1.25 billion, up from $673 million in FY22.

So, what about the Suncorp dividend?

Suncorp ups full-year dividend payout

Management said that, in light of the company's strong balance sheet, the board declared a fully franked final dividend of 27 cents per share.

That sees the full-year dividend payout come to 60 cents per share, up 50% from 40 cents per share paid in FY22. At the current share price that works out to a trailing yield of 8.1%.

Despite the year on year increase in the full-year Suncorp dividend, it equates to a payout ratio of 60% of the company's FY23 cash earnings.

That falls within Suncorp's target payout ratio range of 60% to 80%. But it's right at the bottom end.

This has to do with some potential headwinds on the horizon with increasing FY24 reinsurance costs and higher costs than initially expected as Suncorp works through the Tribunal process relating to the sale of its banking assets to ANZ Group Holdings Ltd (ASX: ANZ).

Management said they are pursuing a "prudent and disciplined approach to managing capital in the context of the current environment".

Looking at what investors can expect from Suncorp dividends in the years ahead, the company said it will maintain its commitment to the 60% to 80% dividend payout ratio, with management "acknowledging the lower payout in FY23 reflected some significant shifts in capital" in the short term.

If you want to receive the final Suncorp dividend of 27 cents per share, you'll need to own the stock at market close this Friday.

Shares trade ex-dividend on Monday, 14 August.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

Here are 2 ASX income stocks with yields above 7%

These businesses are providing investors with significant income.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Want passive income? Check out these ASX dividend shares

Analysts think these shares could be perfect for passive income investors.

Read more »

A couple stares at the tv in shock, with the man holding the remote up ready to press a button.
Dividend Investing

Why Macquarie expects this high-yielding ASX All Ords stock to charge higher AND boost its dividends

Looking for a quality ASX dividend share with strong growth potential? Read on!

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Loving senior couple at the swimming pool. Senior woman sitting on the edge of the pool and giving lemonade to her husband who is swimming.
Dividend Investing

How I'd invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch

Here’s how I’d start building retirement income from square one.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget Westpac and buy these ASX dividend shares to buy

Analysts think that these shares would be better than the big four banks.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

How big will the BHP dividend be in 2026?

Let’s dig into the potential dividends from this mining giant.

Read more »

an attractive young woman with sad eyes holds a red paper love heart over her mouth as though she has been unlucky in love.
Dividend Investing

What I love about these 2 ASX dividend shares

There’s a lot to like!

Read more »