January 06, 2026 a 03:31 pm
AIZ: Dividend Analysis - Assurant, Inc.
Assurant, Inc. provides a compelling dividend profile with a solid history of returning cash to shareholders, evidenced by a 22-year track record of consistent dividend payments. The company's current dividend yield reflects a modest return in comparison to the sector, yet its low payout ratio suggests robust retention for growth and reserves. The recent dividend growth signals Assurant’s commitment to reward shareholders with sustainable increases despite economic fluctuations. Overall, the safety and growth potential of its dividend are attractive for long-term income investors.
Overview 📊
Assurant operates in the insurance sector with a dividend yield of 1.45%, indicative of moderate income contribution primarily supported by other capital appreciation strategies. Its current dividend per share stands at 2.98 USD with a 22-year history of uninterrupted payouts, showcasing stability. The absence of any recent dividend cuts underscores its effective capital management strategy.
| Metric | Details |
|---|---|
| Sector | Insurance |
| Dividend Yield | 1.45% |
| Current Dividend Per Share | 2.98 USD |
| Dividend History | 22 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
Assurant's dividend history over the past five years reflects disciplined growth, vital for investors seeking dependable income streams. Consistent dividend payments are crucial as they communicate a company's financial health and dedication to investor returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 3.28 |
| 2024 | 2.96 |
| 2023 | 2.82 |
| 2022 | 2.74 |
| 2021 | 2.66 |
Dividend Growth 📈
Dividend growth is a reliable indicator of a company’s underlying financial strength and strategic priority on shareholder returns. Analyzing growth over the past few years highlights sustainable dividend increases despite market variances.
| Time | Growth |
|---|---|
| 3 years | 6.18% |
| 5 years | 5.16% |
The average dividend growth is 5.16% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ✅
The payout ratio reflects how much of the company's earnings is distributed as dividends to its shareholders. A balanced payout ratio ensures sufficient reserves for reinvestment while maintaining dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 17.87% |
| Free Cash Flow-based | 14.63% |
The EPS-based payout ratio of 17.87% and FCF-based 14.63% indicate a conservative payout policy, ensuring ample capacity to navigate economic downturns while rewarding shareholders.
Cashflow & Capital Efficiency 💰
Evaluating cash flow efficiency and capital utilization is pivotal for understanding a company’s financial resilience and its capacity to sustain dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 9.98% | 10.39% | 6.04% |
| Earnings Yield | 6.83% | 7.13% | 4.07% |
| CAPEX to Operating Cash Flow | 16.61% | 17.79% | 31.21% |
| Stock-based Compensation to Revenue | 0.68% | 0.67% | 0.61% |
| Free Cash Flow / Operating Cash Flow Ratio | 83.39% | 82.21% | 68.79% |
Assurant’s cash flow metrics depict strong cash conversion and capital efficiency, underpinning its ability to maintain and possibly enhance future dividend payouts.
Balance Sheet & Leverage Analysis 💼
An examination of financial leverage and balance sheet composition provides insight into a company's financial stability and risk profile, critical for evaluating long-term dividend sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt to Equity | 40.79% | 43.26% | 50.37% |
| Debt to Assets | 5.95% | 6.19% | 6.43% |
| Debt to Capital | 28.97% | 30.19% | 33.50% |
| Net Debt to EBITDA | 0.22 | 0.41 | 0.93 |
| Current Ratio | 2.61 | 19.91 | 2.41 |
| Quick Ratio | 2.61 | 19.91 | 2.41 |
| Financial Leverage | 6.86 | 6.99 | 7.83 |
The improvement in leverage ratios suggests disciplined financial management, effectively positioning Assurant to meet short and long-term obligations, enhancing per-share dividend security.
Fundamental Strength & Profitability 🔎
Assessing profitability provides clarity on a firm’s operational efficiency and capability to generate wealth, critical for sustaining future dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 14.89% | 13.36% | 6.54% |
| Return on Assets | 2.17% | 1.91% | 0.84% |
| Net Profit Margin | 6.40% | 5.77% | 2.71% |
| EBIT Margin | 8.71% | 8.22% | 4.50% |
| EBITDA Margin | 10.59% | 9.98% | 6.28% |
The consistently high returns on equity and assets, alongside solid profit margins, exhibit Assurant’s effective asset utilization and cost management tempering long-term dividend sustainability.
Price Development 📉
Dividend Scoring System ✅
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 3/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 4/5 | |
| Payout Ratio | 5/5 | |
| Financial Stability | 4/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Total Score: 34/40
Rating ⭐️
Assurant, Inc. demonstrates strong fundamentals with a commitment to rewarding shareholders through dividends. The moderate yet stable dividend yield, coupled with robust coverage ratios and prudent financial management, underscores its appeal in a diversified income-targeted portfolio. Recommended as a solid hold for investors seeking steady, long-term dividend income.