RSA Insurance Share Price (RSA)

Great way to end the holiday week

Credit where credit is due, Dividends where in bank acc first thing on payment date Friday,hopefully no dividend cut here Thou it seems to be the lastest fashion now in boardrooms

slightly better than hoped for and suitably boring

... you can have my shares for a tenner ...

(another paper holder from many years ago......)

Strong performance
Having experienced a challenging period in 2013 when it recorded a pre-tax loss, insurance company RSA (LSE: RSA) has delivered a strong recovery. Under a refreshed management team and with a new strategy it has been able to not only return to having a black bottom line, but has also delivered three consecutive years of double-digit earnings growth.

In fact, in the last three years, its net profit has increased at an annualised rate of around 38%, which suggests that it has found a successful strategy. This has allowed it to raise dividends per share by 87% in the last two years, with further growth set to come.

RSA is expected to report a rise in shareholder payouts of over 30% per annum in the next two financial years. Its capacity to pay a higher dividend is set to improve, with its earnings due to increase by 15% this year and by a further 6% next year. Even with its strong growth in shareholder payouts, it is still due to have a dividend coverage ratio of 1.6 next year. This suggests that its 5.1% forward dividend yield is highly sustainable over the long run.