October 31, 2025 a 11:31 am
📊 ELV: Dividend Analysis - Elevance Health Inc.
Elevance Health Inc., with its strategic dividend approach, demonstrates a stable and consistent dividend history over the past 15 years. Despite a moderate yield of 2.12%, the company's growth and financial prudence signal attractive prospects for income-focused investors. The absence of any recent dividend cuts further enhances the credibility of Elevance's commitment to shareholder returns.
🗣️ Overview
Elevance Health Inc. operates in a robust sector with significant market stability. The current dividend metrics reflect its financial discipline and strategic allocations. A quick summary of core dividend metrics is outlined below:
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 2.12% |
| Current Dividend per Share | 6.48 USD |
| Dividend History | 15 years |
| Last Cut or Suspension | None |
📉 Dividend History
The history showcases Elevance's ability to maintain and increase dividends over time, reflecting solid earnings growth and management's commitment to returning capital to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 6.84 |
| 2024 | 6.52 |
| 2023 | 5.92 |
| 2022 | 5.12 |
| 2021 | 4.52 |
📈 Dividend Growth
Elevance has delivered a consistent increase in dividends, demonstrated by the growth rates over recent years, aligning with shareholder value creation strategies.
| Time | Growth |
|---|---|
| 3 years | 12.99% |
| 5 years | 15.30% |
The average dividend growth is 15.30% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Maintaining a conservative payout ratio is crucial for sustaining future dividend payments and foretelling a company's long-term financial stability.
| Key figure | Ratio |
|---|---|
| EPS-based | 26.43% |
| Free cash flow-based | 38.20% |
The EPS payout ratio of 26.43% and FCF payout ratio of 38.20% indicate that Elevance maintains a balance between reinvesting for growth and rewarding shareholders, a prudent approach valued by investors.
Cashflow & Capital Efficiency
These metrics provide key insights into the company's ability to generate cash relative to its expenses and investments, highlighting operational efficiency and profitability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.30% | 6.16% | 5.89% |
| Earnings Yield | 7.96% | 6.97% | 4.79% |
| CAPEX/Operating Cash Flow | 23.31% | 16.08% | 13.72% |
| Stock-based Compensation/Revenue | 0.12% | 0.17% | 0.17% |
| Free Cash Flow / Operating Cash Flow Ratio | 78.37% | 83.92% | 86.28% |
Elevance demonstrates solid cash flow efficiency and reinvestment capability, marked by robust FCF yields and efficient capital allocations.
Balance Sheet & Leverage Analysis
Understanding balance sheet strength and leverage provides insights into the company’s long-term solvency and risk management.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.76 | 0.64 | 0.67 |
| Debt-to-Assets | 0.27 | 0.23 | 0.23 |
| Debt-to-Capital | 0.43 | 0.39 | 0.40 |
| Net Debt to EBITDA | 2.19 | 1.77 | 1.65 |
| Current Ratio | 2.01 | 2.05 | 2.05 |
| Quick Ratio | 2.01 | 2.05 | 2.05 |
| Financial Leverage | 2.83 | 2.77 | 2.84 |
Elevance's balance sheet indicates strong leverage management and liquidity, positioning the company for stable future operations.
Fundamental Strength & Profitability
These metrics provide a comprehensive view of the company’s profitability and sustainability, which are critical for long-term investor confidence.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 14.47% | 15.23% | 16.26% |
| Return on Assets | 5.12% | 5.50% | 5.74% |
| Margins | |||
| Net | 3.38% | 3.49% | 3.76% |
| EBIT | 5.14% | 5.10% | 5.40% |
| EBITDA | 5.93% | 6.12% | 6.47% |
| Gross | 100% | 100% | 100% |
| Research & Development/Revenue | 0% | 0% | 0% |
The company exhibits consistent profitability and returns, supporting a sustainable growth trajectory and reassuring investors of ongoing value creation.
Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34 out of 40
✅ Rating
In conclusion, Elevance Health Inc. emerges as a fundamentally strong option for dividend-focused investors. Its track record of steady dividend growth, robust payouts, and financial stability underscores a reliable investment opportunity with growth potential. Given the comprehensive assessment, investing in Elevance Health is recommended for those seeking robust dividend returns backed by substantial corporate stability.