February 26, 2026 a 02:46 am
AIG: Dividend Analysis - American International Group, Inc.
American International Group, Inc. (AIG) presents a compelling dividend profile with a substantial history and consistent payments. Despite slight fluctuations in growth, its dividend yield paired with financial stability showcases its strong position in the market.
📊 Overview
A detailed look into AIG’s dividend metrics reveals a robust sector performance with a historically steady dividend distribution. Maintaining a substantial yield, AIG proves its commitment to shareholders.
| Metric | Details |
|---|---|
| Sector | Insurance |
| Dividend Yield | 2.25 % |
| Current Dividend per Share | 1.73 USD |
| Dividend History | 40 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
AIG's extensive dividend history is emblematic of its stability, which extends over four decades. This track record not only instills confidence among investors but is also indicative of sound corporate governance.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.45 |
| 2025 | 1.75 |
| 2024 | 1.56 |
| 2023 | 1.40 |
| 2022 | 1.28 |
📈 Dividend Growth
Examining the growth trajectory of AIG’s dividends over recent years highlights modest yet consistent improvements, reflecting a strategy of steady shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 10.99 % |
| 5 years | 6.45 % |
The average dividend growth is 6.45 % over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio measures dividend sustainability, with AIG maintaining a balanced approach to deploying earnings. An examination of AIG's payout ratios indicates sustainable distribution practices.
| Key figure | Ratio |
|---|---|
| EPS-based | 30.18 % |
| Free cash flow-based | 28.12 % |
The EPS payout ratio of 30.18 % and FCF payout ratio of 28.12 % indicate a prudent dividend policy, ensuring sustainability and growth potential.
✅ Cashflow & Capital Efficiency
Analyzing AIG’s cash flow and capital efficiency highlights its capacity to generate cash relative to its operations, a key indicator of its financial health and profitability.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 12.81 % | 7.42 % | 6.85 % |
| Earnings Yield | 7.47 % | -3.18 % | 6.40 % |
| CAPEX to Operating Cash Flow | 0 % | 0 % | 0 % |
| Stock-based Compensation to Revenue | 0 % | 0 % | 0 % |
| Free Cash Flow / Operating Cash Flow Ratio | 100 % | 100 % | 100 % |
The steady performance in free cash flow and earnings yield across years fortifies AIG’s stability, validating its strong cash management strategies.
⚠️ Balance Sheet & Leverage Analysis
AIG’s balance sheet strength and leverage ratios underpin its creditworthiness, laying a foundation for sustainable long-term operations and shareholder returns.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 23.94 % | 20.98 % | 22.34 % |
| Debt-to-Assets | 2.01 % | 5.53 % | 5.70 % |
| Debt-to-Capital | 19.31 % | 17.34 % | 18.26 % |
| Net Debt to EBITDA | 1.29 | 0.96 | 1.02 |
| Current Ratio | 1.26 | 1.28 | 0.85 |
| Quick Ratio | 1.26 | 1.28 | 0.85 |
| Financial Leverage | 11.89 | 3.79 | 3.91 |
AIG's leverage profile suggests a balanced use of debt, contributing to financial resilience and strategic operational funding without overextending.
📉 Fundamental Strength & Profitability
AIG’s fundamentals reflect solid profitability metrics, essential for gauging potential growth trajectory and competitive positioning amidst market forces.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 8.03 % | -3.30 % | 7.53 % |
| Return on Assets | 0.68 % | -0.87 % | 1.92 % |
| Margins (Net, EBIT, EBITDA, Gross) | 13.03 %, 12.10 %, 25.84 %, 15.63 % | -5.15 %, 15.89 %, 29.08 %, 34.02 % | 11.56 %, 15.97 %, 28.87 %, 34.51 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
The profitability ratios demonstrate AIG's effective management and value generation capability, consistent with its fiscal goals and market expectations.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🗣️ Rating
American International Group, Inc. presents a resilient and reliable dividend profile, upheld by a solid financial foundation and prudent payout policies. Although modest in growth, its consistency and commitment to shareholders manifest in continued financial stability. AIG is recommended for investors seeking steady income with sound risk management.