Yahoo Finance Why Insurance Australia Group Limited (ASX:IAG) Is An Attractive Investment
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Insurance Australia Group Limited (ASX:IAG) due to its excellent fundamentals in more than one area. IAG is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Insurance Australia Group here.
Adequate balance sheet average dividend payer
IAG’s debt-to-equity ratio stands at 22.80%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. Debt funding requires timely payments on interest to lenders. IAG’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
IAG is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Insurance Australia Group, I’ve put together three pertinent aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for IAG’s future growth? Take a look at our free research report of analyst consensus for IAG’s outlook.
Historical Performance: What has IAG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IAG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
