The Hartford Financial Services Group Inc's Dividend Analysis
Assessing the Sustainability of HIG's Dividend Payouts
The Hartford Financial Services Group Inc (NYSE:HIG) recently announced a dividend of $0.47 per share, payable on 2024-04-02, with the ex-dividend date set for 2024-03-01. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into The Hartford Financial Services Group Inc's dividend performance and assess its sustainability.
What Does The Hartford Financial Services Group Inc Do?
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The Hartford Financial Services Group Inc provides a diverse array of insurance and financial services, including property and casualty insurance, group benefits, and mutual funds. The company operates through several segments, including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Hartford Funds, as well as a Corporate category.
A Glimpse at The Hartford Financial Services Group Inc's Dividend History
The Hartford Financial Services Group Inc has upheld a steady dividend payment history since 1996, with distributions occurring quarterly. Moreover, the company has increased its dividend each year since 2009, earning it the title of a dividend achiever, which recognizes companies that have consistently raised their dividend for at least the past 15 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down The Hartford Financial Services Group Inc's Dividend Yield and Growth
As of today, The Hartford Financial Services Group Inc boasts a 12-month trailing dividend yield of 1.83% and a 12-month forward dividend yield of 1.97%. This indicates anticipated growth in dividend payments over the next year.
Looking at the past three years, The Hartford Financial Services Group Inc's annual dividend growth rate was 10.30%. Stretching to a five-year span, this rate slightly decreases to 9.70% per year. Over the last decade, however, The Hartford Financial Services Group Inc's annual dividends per share growth rate was a robust 12.20%.
Considering The Hartford Financial Services Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost for its stock is approximately 2.91% as of today.
The Sustainability Question: Payout Ratio and Profitability
To gauge the sustainability of its dividend, we examine The Hartford Financial Services Group Inc's payout ratio. The dividend payout ratio reveals the portion of earnings allocated to dividends. A lower ratio implies the company retains more earnings for growth and stability. As of 2023-12-31, The Hartford Financial Services Group Inc's dividend payout ratio was 0.20, indicating a healthy balance between distributing profits and retaining funds for future needs.
The company's profitability rank, a measure of earnings performance relative to peers, stands at 7 out of 10 as of 2023-12-31. This rank points to good profitability prospects, with the company reporting net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
The Hartford Financial Services Group Inc's growth rank of 7 out of 10 indicates a promising growth trajectory compared to competitors. The company's revenue per share and 3-year revenue growth rate show a strong revenue model, with an average annual increase of 11.50%, outperforming approximately 73.74% of global competitors.
The Hartford Financial Services Group Inc's 3-year EPS growth rate is also noteworthy, with an average annual increase of 21.10%, outperforming approximately 74.48% of global competitors. Additionally, the company's 5-year EBITDA growth rate of 12.10% surpasses the performance of approximately 70.99% of global competitors.
Engaging Conclusion
In conclusion, The Hartford Financial Services Group Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, solid profitability, and favorable growth metrics collectively suggest a sustainable dividend policy. These factors not only provide a degree of assurance to current shareholders but also present a compelling case for potential investors seeking reliable income streams. As The Hartford Financial Services Group Inc navigates the future, it appears well-positioned to maintain its reputation as a dividend achiever. Will its strategic initiatives and market position allow it to continue this trend? For investors seeking high-dividend yield opportunities, GuruFocus Premium offers the High Dividend Yield Screener tool to discover similar investment prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
