November 08, 2025 a 03:31 pm
BRO: Dividend Analysis - Brown & Brown, Inc.
Brown & Brown, Inc. is a well-established player within its sector, showcasing a resilient dividend payment structure. With a promising 39-year history of steady distribution and a solid growth rate, the company signals stability and potential for future income growth, making it an attractive choice for dividend-focused investors.
📊 Overview
Brown & Brown, Inc. operates in a key sector with a current dividend yield of 0.79%, indicating a relatively moderate payout compared to others. The current dividend per share stands at $0.546, and their robust history of 39 years of dividend payouts demonstrates strong corporate commitment to shareholders. The last cut or suspension occurred 32 years ago, in 1991, further emphasizing this consistency.
| Descriptor | Value |
|---|---|
| Sector | Insurance Brokers |
| Dividend yield | 0.79 % |
| Current dividend per share | $0.546 |
| Dividend history | 39 years |
| Last cut or suspension | 1991 |
🗣️ Dividend History
Brown & Brown, Inc.’s dividend history highlights their continuous commitment to increasing shareholder value through consistent payouts, illustrating the company’s stability in varying market conditions.
| Year | Dividend Per Share |
|---|---|
| 2025 | $0.615 |
| 2024 | $0.54 |
| 2023 | $0.475 |
| 2022 | $0.4225 |
| 2021 | $0.38 |
📈 Dividend Growth
The company’s dividend growth reflects its robust financial health and strategic expansion. Over three years, the dividend has grown by 12.43%, while over five, it increased by 10.69%, indicating steady progression.
| Time | Growth |
|---|---|
| 3 years | 12.43 % |
| 5 years | 10.69 % |
The average dividend growth is 10.69% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are critical in evaluating dividend sustainability. With an EPS-based payout ratio of 18.09% and a free cash flow-based ratio of 13.84%, Brown & Brown demonstrates a conservative, well-balanced approach to dividend payments, indicating potential for future increases while safeguarding capital reinvestment.
| Key figure | Ratio |
|---|---|
| EPS-based | 18.09 % |
| Free cash flow-based | 13.84 % |
The relatively low payout ratios suggest that the company has a significant buffer, providing financial flexibility and security against market fluctuations.
👨💻 Cashflow & Capital Efficiency
The following analysis provides insight into the company's cash flow generation alongside capital allocation strategies. This perspective is integral to understanding how Brown & Brown funds its operations, growth, and shareholder returns.
| Fiscal Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.80 % | 4.71 % | 5.23 % |
| Earnings Yield | 3.45 % | 4.35 % | 4.24 % |
| CAPEX to Operating Cash flow | 6.98 % | 6.83 % | 5.90 % |
| Stock-based Compensation to Revenue | 2.15 % | 2.12 % | 1.85 % |
| Free Cash Flow / Operating Cash Flow Ratio | 93.02 % | 93.17 % | 94.10 % |
Brown & Brown’s efficient cash flow management and conservative capital reinvestments demonstrate its potential to sustain dividend growth while fostering long-term value creation.
🧾 Balance Sheet & Leverage Analysis
An examination of leverage and liquidity ratios offers an understanding of Brown & Brown’s financial health and risk profile. A strong balance sheet is essential for supporting ongoing operations and shareholder returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.63 | 0.72 | 0.91 |
| Debt-to-Assets | 0.23 | 0.27 | 0.30 |
| Debt-to-Capital | 0.39 | 0.42 | 0.48 |
| Net Debt to EBITDA | -0.46 | 2.1428 | 2.9198 |
| Current Ratio | 1.18 | 1.03 | 1.08 |
| Quick Ratio | 1.10 | 1.03 | 1.09 |
| Financial Leverage | 2.74 | 2.67 | 3.03 |
With improving leverage ratios and solid liquidity, Brown & Brown showcases its strong financial fundamentals, which ensure the continued payment of dividends and reduce financial risk.
📉 Fundamental Strength & Profitability
Brown & Brown's profitability ratios are indicators of their operational efficiency and potential for future asset growth, with meaningful impacts on shareholder return.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 15.43 % | 5.63 % | 21.11 % | 31.97 % | 36.68 % | 48.86 % | 0.00 % |
| 2023 | 15.60 % | 5.85 % | 20.73 % | 31.98 % | 36.89 % | 47.92 % | 0.00 % |
| 2022 | 14.58 % | 4.81 % | 18.85 % | 28.74 % | 33.96 % | 49.00 % | 0.00 % |
These metrics reinforce Brown & Brown’s competitive edge in extracting value from its assets, facilitating robust returns for investors.
📈 Price Development
🏆 Dividend Scoring System
Brown & Brown’s performance across several critical criteria is assessed to determine their overall dividend attractiveness.
| Category | Score (1-5) | Visualization |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
⭐ Rating
Brown & Brown, Inc. receives a commendable score of 35 out of 40 in our dividend scoring system, reflecting its strong dividend stability, moderate growth, and solid payout strategy. This makes the company a prudent choice for investors seeking stable income along with potential capital appreciation.