June 10, 2025 a 07:46 am
ALL: Dividend Analysis - The Allstate Corporation
The Allstate Corporation offers a resilient dividend profile with a thoughtful balance between yield, stability, and growth. Despite a moderately low dividend yield, the company has demonstrated robust growth over the years. A consistent history of 33 years of dividend payments highlights its commitment to returning capital to shareholders.
📊 Overview
The Allstate Corporation is positioned within the insurance sector. The current dividend yield is approximately 1.91%, which indicates a cautious approach to dividend distributions. The latest dividend per share stands at USD 4.08, and its 33-year dividend history underscores stability. Notably, the company has not experienced a recent dividend cut or suspension.
| Detail | Value |
|---|---|
| Sector | Insurance |
| Dividend Yield | 1.91% |
| Current Dividend per Share | 4.08 USD |
| Dividend History | 33 years |
| Last Cut or Suspension | None |
📈 Dividend History
The Allstate Corporation boasts a rich history of dividend payments, vital for assessing long-term shareholder returns. This historical consistency ensures reliability for income-focused investors. The absence of recent cuts or suspensions further adds to its credibility.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.00 |
| 2024 | 3.68 |
| 2023 | 3.56 |
| 2022 | 3.40 |
| 2021 | 3.24 |
📈 Dividend Growth
Tracking dividend growth is crucial for evaluating a company's capacity to enhance shareholder value. The Allstate Corporation shows promising growth with dividends rising consistently over the years. This growth indicates robust financial health and an active commitment to shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 4.34% |
| 5 years | 12.97% |
The average dividend growth is 12.97% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
The payout ratio is a pivotal metric for understanding a company's approach to dividends. An EPS-based ratio of 26.68% and an FCF-based ratio of 12.06% suggest prudent management and a conservative dividend strategy, providing ample room for reinvestment and financial flexibility.
| Key Figure | Ratio |
|---|---|
| EPS-based | 26.68% |
| Free Cash Flow-based | 12.06% |
These ratios indicate a sustainable approach to dividend payments, ensuring that The Allstate Corporation can maintain its dividend policy over the foreseeable future without compromising financial growth.
💰 Cashflow & Capital Efficiency
Robust cash flow facilitates dividend stability and investment in growth. Allstate's positive Free Cash Flow Yield of 16.87% and an almost full conversion rate of Operating Cash Flow into Free Cash Flow, with a ratio of approximately 97.65%, highlight its strong cash generation capabilities.
| 2024 | 2023 | 2022 |
|---|---|---|
| 17.12% | 10.78% | 12.78% |
| 37.71% | -1.06% | -7.37% |
| 2.35% | 6.32% | 8.20% |
| 97.65% | 93.68% | 91.79% |
Free cash flow efficiency demonstrates Allstate's capability to balance capital expenditure with shareholder returns, providing a promising outlook for future financial performance and dividend sustainability.
📊 Balance Sheet & Leverage Analysis
A strong balance sheet supports dividend viability. The Allstate Corporation's debt metrics, including a Debt-to-Equity Ratio of 37.71%, indicate a manageable debt load. The Net Debt to EBITDA ratio stands at 1.21, showcasing effective leverage management.
| 2024 | 2023 | 2022 |
|---|---|---|
| 37.71% | 44.69% | 45.54% |
| 12.29% | 76.14% | 815.43% |
| 5.20% | 58.17% | 22.16% |
| 5.21 | 9.82 | -11.15 |
| 15.40 | 0.08 | -4.46 |
With solid financial leverage and credit metrics, Allstate is well-positioned to maintain its financial stability and navigate through cyclical market challenges.
🔍 Fundamental Strength & Profitability
Profitability ratios offer insight into operational efficiency. Allstate's Return on Equity of 21.77% in 2024 showcases its ability to generate shareholder value efficiently. The company's margins display strength and resilience in its core operations.
| 2024 | 2023 | 2022 |
|---|---|---|
| 21.77% | -1.06% | -7.37% |
| 7.28% | -0.33% | -2.50% |
| 23.55% | 13.44% | 12.91% |
The financial metrics illustrate Allstate's capability in maintaining profitability even amid challenging economic environments, driven by strategic cost management and operational effectiveness.
📉 Price Development
✅ Dividend Scoring System
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
💼 Rating
The Allstate Corporation receives a strong rating based on its consistent dividend history, manageable payout ratio, and solid financial stability. While the yield is somewhat moderate, its growth and payout policies ensure a reliable income stream. Therefore, Allstate presents itself as a commendable option for investors seeking both growth and income stability.