July 21, 2026 a 07:31 am

AIG: Dividend Analysis - American International Group, Inc.

Overview 📊

AIG operates within the financial sector, boasting a dividend yield of 2.47% with a current dividend per share of $1.73. With a proud 40-year history of dividend payouts and no recent cuts or suspensions, AIG stands as a pillar of reliability in income investing.

Metric	Details
Sector	Financial
Dividend yield	2.47%
Current dividend per share	$1.73
Dividend history	40 years
Last cut or suspension	None

Dividend History 📉

AIG's long-standing dividend history highlights its reliability in generating shareholder value over an extended period. The consistency in payments reflects the firm’s robust cash flows and commitment to returning capital to investors. Recent history shows a slight decline in per-share dividends which deserves attention, especially for income-focused portfolios. Below is a chart illustrating the trend of recent dividends:

Year	Dividend per Share (USD)
2026	0.95
2025	1.75
2024	1.56
2023	1.40
2022	1.28

Dividend Growth 📈

Understanding dividend growth is crucial in evaluating a firm's potential for increasing shareholder value. Over the past three years, AIG's dividend growth stands at approximately 10.99%, while the five-year growth rate is 6.45%. Though this indicates a moderate expansion, it reflects a stable financial strategy directing towards sustainable growth.

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 ✅

Payout ratios offer insight into how comfortably a company can cover dividend payments. AIG's EPS-based payout ratio stands at 29.40%, and its free cash flow payout ratio is 25.98%. These figures suggest a conservative, yet shareholder-friendly approach, ensuring dividends are well-covered by earnings and cash flows.

Key figure	Ratio
EPS-based	29.40%
Free cash flow-based	25.98%

These payout ratios suggest that AIG maintains a prudent balance between rewarding shareholders with dividends and sustaining growth through reinvestment.

Cashflow & Capital Efficiency 💰

AIG demonstrates proficient management in capital efficiency with a strong free cash flow yield of 8.33% and an earnings yield of 7.36%. Such metrics indicate the company’s ability to generate healthy cash flows relative to its operational scale. The zero CAPEX to Operating Cash Flow ratio reiterates nominal capital expenditure, possibly suggesting mature operations.

Year	Free Cash Flow Yield	Earnings Yield	CAPEX to Operating Cash Flow	Stock-based Compensation to Revenue	Free Cash Flow / Operating Cash Flow Ratio	Return on Invested Capital
2025	6.85%	6.40%	0	0	1	5.29%
2024	7.42%	-3.18%	0	0	1	4.47%
2023	12.81%	7.47%	0	0	1	0.63%

Consistent positive free cash flow yields and earnings yields indicate strong cash generation capabilities, reinforcing financial resilience.

Balance Sheet & Leverage Analysis 📜

AIG enjoys a healthy balance sheet with a debt-to-equity ratio of 22.34% and a debt-to-assets ratio of 5.70%. Such ratios reflect moderate leverage levels, while a strong current and quick ratio further conveys adequate liquidity management.

Year	Debt-to-Equity	Debt-to-Assets	Debt-to-Capital	Net Debt to EBITDA	Current Ratio	Quick Ratio	Financial Leverage
2025	22.34%	5.70%	18.26%	1.02	0.85	0.85	3.92
2024	20.98%	5.53%	17.34%	0.96	1.28	1.28	3.79
2023	23.94%	2.01%	19.31%	1.29	1.26	1.26	11.89

AIG’s leveraged positions are modest and showcase stability, warranting confidence in its continued operational and financial performance.

Fundamental Strength & Profitability 📈

AIG's profitability metrics such as Return on Equity (ROE) and Return on Assets (ROA) project a steady picture of operational efficiency. Though past figures showed volatility, recent improvements indicate strategic emphasis on reinforcing core strengths.

Year	Return on Equity	Return on Assets	Margins: Net	EBIT	EBITDA	Gross	Research & Development to Revenue
2025	7.53%	1.92%	11.56%	15.97%	28.87%	34.51%	0
2024	-3.30%	-0.87%	-5.15%	15.88%	29.08%	34.02%	0
2023	8.03%	0.68%	13.03%	12.10%	25.84%	15.63%	0

The gradual strengthening of profitability ratios underlines AIG’s positive trajectory in improving organizational value through effective cost and revenue management.

Price Development 📉

Dividend Scoring System 🗣️

Criteria	Points	Score
Dividend yield	4
Dividend Stability	5
Dividend growth	3
Payout ratio	5
Financial stability	4
Dividend continuity	5
Cashflow Coverage	4
Balance Sheet Quality	4

Rating & Recommendation

American International Group, Inc. demonstrates a robust dividend profile with an excellent history of stability and a reasonable growth trajectory. With a cumulative score of 34 out of 40, it stands as a strong contender in the dividend landscape. Therefore, AIG is recommended as a favorable option for investors seeking reliable and consistent dividend income with the potential for moderate growth.