Despite having a strong financial performance for the 12 months to December 31, 2021 (FY21), QBE's shares have tumbled down this year due to various factors, including the conflict between Russia and Ukraine and the recent severe weather flooding in two Australian states.
Last month, QBE's shares already dropped by nearly 11% after its full-year profit missed estimates, making it the “top loser” on the benchmark, due to tensions between the USA and Russia over Ukraine.
On Monday, the insurance giant's shares sank again due to the rising costs of the recent heavy rainfall and flooding in Queensland and New South Wales (NSW) and trading ex-dividend, according to The Motley Fool.
QBE's catastrophe allowance for the 2022 financial year (FY22) is $962 million, including a first-quarter allowance of $248 million. However, the allowance is expected to take a massive hit from the flooding in Queensland and NSW, which is estimated to cost around $1 billion.
Focusing on trading ex-dividend on March 07, The Motley Fool noted that share price usually falls in proportion to the dividend amount during an ex-dividend day. Currently, QBE has a dividend trailing yield of 1.09% and a market capitalisation of roughly $15 billion. However, its final dividend is partially franked, which means investors will receive some tax credits when tax time comes along.
Motley Fool investing expert Scott Phillips, who has been running an online investing service for more than a decade and provides members with stock picks that have doubled and more, said QBE is not included in what he believes are the five best stocks for investors to buy now.
