Board of Directors Citigroup (NYSE:C) announced that the dividend on August 22 will increase to $0.60, 7.1% higher than the $0.56 paid last year. This reduces annual payments to 2.4% of the current share price, which is unfortunately lower than the stocks paid by the industry.
While dividend yields are important to income investors, it is also important to consider any large share price transfers, as this will usually outweigh any gains in distribution. Investors will be pleased to see Citigroup's share price rise 45% over the past 3 months, which is good for shareholders and can also explain the decline in dividend yields.
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Dividend yields are a bit lower, but the sustainability of payments is also an important part of evaluating income stocks.
Citigroup has a long history of paying some of its proceeds to shareholders after distributing dividends for at least 10 years. Taking data from the last earnings report, the company's expenditure ratio is calculated to be 33%, which means Citigroup will be able to pay its final dividend without pressure on the balance sheet.
Over the next 3 years, EPS is expected to expand by 69.8%. Analysts predict that future payment ratios may be 30% over the same time, which is the number we think companies can maintain.
New York Stock Exchange: C Historical Dividend July 21, 2025
Check out our latest analysis of Citigroup
Even in the long history of paying dividends, the company's distribution has been very stable. Since 2015, the annual payment was $0.04, while the most recent full-year payment was $2.24. This means that the company's annual allocation is about 50% compared to the term. We can see that payments show some very good upward momentum without staggering, which makes it guaranteed that future payments will also be reliable.
Investors can attract stocks based on the quality of their payment history. Over the past five years, revenue has grown by about 4.0% per year, which is not big, but is better than seeing a shrinkage. If Citigroup strives to find viable investments, it can always choose to increase its spending ratio to pay shareholders more.
Overall, we think this could be an attractive income inventory that will only get better if you pay a higher dividend this year. The proceeds are easily covered by distribution and the company is generating a lot of cash. All in all, this checks out the many boxes we look for when selecting our revenue inventory.
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Generally, investors tend to prefer companies with consistent, stable dividend policies rather than running irregular companies. However, investors have other considerations when analyzing stock performance. Revenue growth can often achieve the future value of a company's dividend payments well. See if the 15 Citigroup analysts we track are predicting our Free Analysts' estimates of the company. Looking for more high-yield dividend ideas? Try ours Collect strong dividend payers.
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This article by Simply Wall ST is essentially general. We provide comments based on historical data, analysts use only unbiased approaches to forecasting, and our articles are not meant to be financial advice. It does not constitute a recommendation to buy or sell any shares, nor does it constitute your target or financial position. We aim to bring you long-term focus analysis driven by fundamental data. Please note that our analysis may not consider the latest price-sensitive company announcements or qualitative materials. Simple Wall ST has no place in any of the stocks mentioned.