February 10, 2026 a 07:31 am
CI: Dividend Analysis - Cigna Corporation
Cigna Corporation showcases a resilient dividend profile with a steady dividend history spanning over four decades. With a current dividend yield of 2.07% and a consistent increase in dividends, Cigna offers a compelling opportunity for income-focused investors. Despite a relatively modest payout ratio, the company's financials suggest a sustainable dividend outlook.
📊 Overview
The overview provides a snapshot of Cigna Corporation's dividend metrics and stability in its sector.
| Metric | Value |
|---|---|
| Sector | Health Care |
| Dividend Yield | 2.07 % |
| Current Dividend Per Share | 5.59 USD |
| Dividend History | 45 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Understanding a company's dividend history is crucial as it reflects its commitment to returning value to shareholders and its financial health over time.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.56 |
| 2025 | 6.04 |
| 2024 | 5.6 |
| 2023 | 4.92 |
| 2022 | 4.48 |
📈 Dividend Growth
Dividend growth rates are essential to ensure that dividends keep pace with inflation and reflect a company's improving financial performance.
| Time | Growth |
|---|---|
| 3 years | 10.47 % |
| 5 years | 1.73 % |
The average dividend growth is 1.73% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a critical indicator of dividend sustainability, signaling how much of earnings or cash flow are returned to shareholders.
| Key figure | Ratio |
|---|---|
| EPS-based | 24.96 % |
| Free cash flow-based | 20.08 % |
With an EPS-based payout ratio of 24.96% and an FCF-based ratio of 20.08%, Cigna ensures prudent management of its earnings and cash flow, suggesting a sustainable dividend policy.
💵 Cashflow & Capital Efficiency
Evaluating cashflow and capital efficiency provides insights into a company's operational effectiveness and its capacity to fund dividends.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 11.57% | 11.52% | 7.10% |
| Earnings Yield | 4.44% | 5.81% | 6.46% |
| CAPEX to Operating Cash Flow | 13.57% | 13.32% | 14.96% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.43% | 86.68% | 85.04% |
The stability of free cash flow and effective capital utilization underscore Cigna's ability to sustain its dividend payments while reinvesting in growth opportunities.
⚖️ Balance Sheet & Leverage Analysis
A robust balance sheet and effective leverage management are imperative for financial stability and continued dividend reliability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 77.92% | 66.91% | 70.32% |
| Debt-to-Assets | 20.51% | 20.25% | 21.93% |
| Debt-to-Capital | 43.79% | 40.09% | 41.29% |
| Net Debt to EBITDA | 2.13 | 2.13 | 2.45 |
| Current Ratio | 0.83 | 0.77 | 0.73 |
| Quick Ratio | 0.73 | 0.65 | 0.61 |
| Financial Leverage | 3.80 | 3.30 | 3.21 |
Cigna maintains a healthy balance sheet with manageable leverage levels, supporting its financial stability and liquidity whilst assuring dividend consistency.
🧲 Fundamental Strength & Profitability
Key fundamentals and profitability ratios project a company's capacity to grow profits and enhance shareholder value.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.37% | 11.17% | 14.94% |
| Return on Assets | 2.20% | 3.38% | 4.66% |
| Margins: Net | 1.39% | 2.64% | 3.71% |
| EBIT | 3.92% | 4.63% | 4.75% |
| EBITDA | 4.63% | 5.55% | 5.78% |
| Gross | 10.51% | 12.89% | 13.02% |
| R&D to Revenue | 0% | 0% | 0% |
Cigna's strong return ratios and consistent profitability indicate operational efficiency and potential for sustained earnings growth.
📉 Price Development
📝 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🏆 Rating
The comprehensive analysis positions Cigna Corporation as a robust dividend contender with enduring financial stability and attractive cash flow metrics. Investors may consider this stock for steady income and potential capital appreciation.
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