Is Corebridge Financial a hidden gem for dividend hunters with its 2.8% yield and recent earnings beat?

**Corebridge Financial could be an attractive option for dividend hunters** due to its 2.8% dividend yield and recent earnings beat, although investors should conduct thorough due diligence before investing. 1. **Attractive Dividend Yield**: The dividend yield of 2.8% is competitive and provides an income stream for investors. The quarterly dividend of $0.24 per share, with an annualized dividend of $0.96, is appealing, especially in the current low-interest-rate environment. 2. **Recent Earnings Beat**: Corebridge Financial reported a non-GAAP profit of $1.36 per share for the quarter, which was 17.5% above analysts’ consensus estimates. This earnings beat indicates strong financial performance and operational efficiency. 3. **Positive Analyst Sentiment**: Analysts have upgraded their price targets and ratings for Corebridge Financial, with a consensus price target of $40.70 and a rating of "Moderate Buy". This suggests that analysts are optimistic about the stock's future performance. 4. **Dividend Payout Ratio**: The payout ratio stands at 181.38%, which is relatively high and could indicate that the dividend is not sustainable based on current earnings. However, the company's free cash flow of -$3.3 million and the fact that it has reported a net loss of $660 million warrant attention. |code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |CRBG|CRBG.N|Corebridge Financial|20240811|7.579170079418771||169| |CRBG|CRBG.N|Corebridge Financial|20240812|7.579170079418771|8.40192|169| |CRBG|CRBG.N|Corebridge Financial|20240813||8.223355704697987|169| |CRBG|CRBG.N|Corebridge Financial|20240814|8.417251386277577|8.165509070714549|169| |CRBG|CRBG.N|Corebridge Financial|20240815|8.417251386277577|7.899369627507162|169| |CRBG|CRBG.N|Corebridge Financial|20240816|8.417251386277577|7.79330035335689|169| |CRBG|CRBG.N|Corebridge Financial|20240817|8.417251386277577||169| |CRBG|CRBG.N|Corebridge Financial|20240818|8.417251386277577||169| |CRBG|CRBG.N|Corebridge Financial|20240819|8.417251386277577|7.774071201973916|169| |CRBG|CRBG.N|Corebridge Financial|20240820|8.417251386277577|7.942038170687793|169| 5. **Financial Performance**: Corebridge Financial's revenue of $4.42 billion for the quarter missed analyst estimates of $4.85 billion. Additionally, the company reported a net margin of 3.73%, which is modest and suggests that the company operates in a competitive market. 6. **Strategic Initiatives**: The company has announced a transformative reinsurance transaction, which could potentially improve its financial structure and growth prospects. However, the sale of 30 million shares by AIG could dilute existing shares and raise questions about the company's ownership structure. In conclusion, while Corebridge Financial offers an attractive dividend yield and has recently beaten earnings expectations, investors should consider the high payout ratio, negative free cash flow, and strategic initiatives before investing. It is crucial to weigh these factors against the company's growth prospects and market conditions to determine if it is a hidden gem for dividend hunters.