WL Dividends - Calling a Bottom?

[walthamny]

When interest rates rise, it does not raise the amount available for dividends right away. Insurance company will invest the excess premiums into Us government bonds and corporate bonds. At minumum there wont be any income for the next 6 months until the st coupon payment is due. Moreover, insurance companies try to maximise return over long run so it is common for them to buy a long term bonds with the coupon payments for the first few years already stripped. That also means dont expect any increase in the amount available for dividends anytime soon. There may be another long term play here which is Covid. If as reported Covid accelerates deaths in the senior market because of missed medical treatments for the last 2 years, it would put stress for the life insurers cash flow. They wont be in a hurry to raise divedends.

 

[Lloyds of Lubbock]

Companies such as NYL, Mass, Guardian, and Penn have used other lines of business to contribute to the dividend.
These other lines of business were started using policyholder money, and when profitable return that money to the policyholders as a contribution to the dividend.
NML does not do this.
Unless you knew the actual dividend formula and what percentage these business's contributed towards the dividend rate, predictions are difficult.