April 19, 2025 a 02:46 am
📊 CI: Dividend Analysis - Cigna Corporation
Cigna Corporation presents a robust dividend profile, supported by its solid market positioning and consistent shareholder returns. Despite a relatively modest dividend yield, the company's long dividend history and stable growth prospects make it an appealing option for dividend-seeking investors looking for sustainable, long-term returns.
📈 Overview
Cigna Corporation, operating in the healthcare sector, showcases a dividend yield of 1.84%. The current dividend per share stands at $5.59, with a commendable 44-year history of dividend payment without any recent cuts or suspensions.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 1.84% |
| Current Dividend Per Share | 5.59 USD |
| Dividend History | 44 years |
| Last Cut/Suspension | None |
🗣️ Dividend History
Having maintained a stable dividend payment for 44 years, Cigna's dividend history is a testament to its consistent performance and reliable income streams for investors. This stability is particularly crucial in uncertain economic conditions.
Recent Dividend Payments:
| Year | Dividend |
|---|---|
| 2025 | 1.51 |
| 2024 | 5.60 |
| 2023 | 4.92 |
| 2022 | 4.48 |
| 2021 | 4.00 |
🚀 Dividend Growth
An analysis of Cigna's dividend growth reveals a 3-year growth rate of 0.12% and a 5-year growth rate of 1.69%. This moderate growth, while not spectacular, indicates a steady enhancement in shareholder value.
| Time | Growth |
|---|---|
| 3 years | 0.12% |
| 5 years | 1.69% |
The average dividend growth is 1.69% over 5 years. This shows moderate but steady dividend growth, underscoring Cigna's commitment to enhancing shareholder returns.
💰 Payout Ratio
Evaluating the payout ratios, Cigna's EPS-based payout ratio is 45.25% and its free cash flow-based ratio is 16.92%. These figures suggest a balanced and sustainable dividend policy.
| Key Figure | Ratio |
|---|---|
| EPS-based | 45.25% |
| Free Cash Flow-based | 16.92% |
The payout ratios indicate that Cigna has room to maintain or even increase its dividends without overextending its financial resources.
💸 Cashflow & Capital Efficiency
Cigna's cash flow metrics, including a free cash flow yield of 10.01% and a CAPEX to operating cash flow ratio of 13.57%, indicate efficient capital use and strong cash generation capability. Such metrics are vital to sustaining dividends and supporting future growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 11.57% | 11.64% | 7.10% |
| CAPEX to Operating Cash Flow | 13.57% | 13.32% | 14.96% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.43% | 86.68% | 85.04% |
| Stock-based Compensation to Revenue | 0% | 0.15% | 0.15% |
These figures demonstrate strong cash flow management and capital efficiency, underlining Cigna's financial resilience and capability to uphold its dividend policy.
📉 Balance Sheet & Leverage Analysis
With a debt-to-equity ratio of 67.91% and net debt-to-EBITDA of 2.41%, Cigna shows moderate leverage. The current and quick ratios indicate adequate liquidity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 77.92% | 66.91% | 69.29% |
| Net Debt to EBITDA | 2.58 | 2.41 | 1.95 |
| Current Ratio | 0.84 | 0.77 | 2.67 |
These leverage and liquidity metrics imply that Cigna maintains a stable balance sheet with controlled debt levels bolstering its capacity to manage long-term obligations.
🏦 Fundamental Strength & Profitability
Cigna's return on equity and assets, along with its varied profit margins, illuminate the company's profitability and growth potential. Such metrics are vital for investors assessing its ability to sustain and grow dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.37% | 11.17% | 14.94% |
| Net Margin | 1.41% | 2.65% | 3.72% |
| EBIT Margin | 2.74% | 3.35% | 5.55% |
These profitability measures suggest sound financial health and operational efficiency, positioning Cigna well for future dividend stability and growth.
📊 Price Development
✅ Dividend Scoring System
Evaluation of Cigna Corporation's dividends across several qualitative criteria:
| Criteria | Score | Indicator |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
⭐ Rating
Cigna Corporation stands out as a reliable dividend-paying entity with strong financial foundations, capable of sustaining long-term growth. Despite its modest yield, the company's commitment to stable dividends makes it an attractive prospect for conservative dividend investors.