March 10, 2026 a 11:31 am
BRO: Dividend Analysis - Brown & Brown, Inc.
Brown & Brown, Inc. presents a stable dividend profile with a commitment to sustainable growth. The company's consistent dividend history, stretching over four decades, underscores its reliability. Although the current dividend yield might seem modest, the steady growth in payouts highlights a sound long-term strategy. Investors might find the low payout ratios and robust financial standing a strong foundation for future yield enhancements.
📊 Overview
| Factor | Value |
|---|---|
| Sector | Insurance |
| Dividend yield | 0.85% |
| Current dividend per share | 0.63 USD |
| Dividend history | 40 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history of a company reveals its commitment to returning value to shareholders. With a 40-year history, Brown & Brown demonstrates remarkable consistency, providing confidence about future payouts.
| Year | Dividend per Share |
|---|---|
| 2026 | 0.165 USD |
| 2025 | 0.615 USD |
| 2024 | 0.54 USD |
| 2023 | 0.475 USD |
| 2022 | 0.4225 USD |
📈 Dividend Growth
Dividend growth is a crucial metric for assessing the sustainability and future potential of payouts. Brown & Brown has achieved a solid growth rate over the past five years.
| Time | Growth |
|---|---|
| 3 years | 13.33% |
| 5 years | 12.09% |
The average dividend growth is 12.09% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Payout ratios indicate how sustainable the dividend payouts are with respect to earnings and cash flow. Brown & Brown maintains a conservative payout strategy.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 19.79% |
| Free cash flow-based | 14.94% |
The EPS payout ratio of 19.79% and FCF payout ratio of 14.94% suggest that Brown & Brown can comfortably cover its dividends from earnings and cash flow.
✅ Cashflow & Capital Efficiency
Cash flow and capital efficiency highlight how effectively a company generates cash from its operations and utilizes its capital to generate returns.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 5.59% | 3.80% | 4.71% |
| Earnings Yield | 4.27% | 3.45% | 4.36% |
| CAPEX to Operating Cash Flow | 4.69% | 6.98% | 6.83% |
| Stock-based Compensation to Revenue | 1.56% | 2.15% | 2.12% |
| Free Cash Flow / Operating Cash Flow Ratio | 95.31% | 93.02% | 93.17% |
The cash flow indicators suggest that Brown & Brown is efficient in converting its earnings into cash and manages its capital effectively.
📊 Balance Sheet & Leverage Analysis
Analyzing balance sheet and leverage metrics helps understand the financial health and risk exposure of a company.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.631 | 0.631 | 0.721 |
| Debt-to-Assets | 0.264 | 0.231 | 0.270 |
| Debt-to-Capital | 0.387 | 0.387 | 0.419 |
| Net Debt to EBITDA | 3.34 | 1.96 | 2.14 |
| Current Ratio | 1.039 | 1.097 | 1.035 |
| Quick Ratio | 1.039 | 1.097 | 1.035 |
| Financial Leverage | 2.390 | 2.736 | 2.668 |
Brown & Brown maintains a strong balance sheet with stable leverage ratios, indicating prudent financial management and a comfortable liquidity position.
📊 Fundamental Strength & Profitability
Fundamental strength and profitability metrics demonstrate how well a company can generate profit relative to its revenue, assets, and equity.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 8.40% | 15.43% | 15.60% |
| Return on Assets | 3.51% | 5.64% | 5.85% |
| Net Margin | 17.70% | 21.11% | 20.73% |
| EBIT Margin | 28.01% | 31.97% | 31.98% |
| EBITDA Margin | 34.17% | 36.68% | 36.89% |
The profitability ratios indicate that Brown & Brown is efficient in converting sales into profits, with strong returns on equity and assets.
📉 Price Development
🏆 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34/40
📈 Rating
In conclusion, Brown & Brown, Inc. presents a compelling dividend profile characterized by stability and consistent growth. The company's conservative payout ratios and strong financial metrics provide a solid foundation for sustaining future dividends. As such, Brown & Brown is a prudent choice for dividend-focused investors seeking long-term reliability and growth potential.