December 27, 2025 a 03:31 pm
ELV: Dividend Analysis - Elevance Health Inc.
Elevance Health Inc. demonstrates a solid dividend profile with a consistent history of payments and growth. The company's strategic allocation of capital and resilient financial health underpin its ability to sustain payouts. Although the dividend yield is moderately low, reflecting a stable growth-oriented strategy, the consistent increment in dividends marks its commitment towards shareholder value.
📊 Overview
| Detail | Value |
|---|---|
| Sector | Health |
| Dividend yield | 2.07 % |
| Current dividend per share | 6.48 USD |
| Dividend history | 15 years |
| Last cut or suspension | None |
🗣️ Dividend History
Over the years, Elevance Health Inc. has showcased a robust pattern of increasing their dividend payouts, which is a key indicator of financial health and shareholder reward commitment. The continuity in payments displays financial resilience, crucial during fluctuating market conditions.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 6.84 |
| 2024 | 6.52 |
| 2023 | 5.92 |
| 2022 | 5.12 |
| 2021 | 4.52 |
📈 Dividend Growth
Elevance Health Inc.'s dividend growth over the years stands out as a strong indicator of financial strategy execution. The ability to increase dividends amid various economic climates signifies operational efficiency and a shareholder-focused approach across different timelines.
| 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
Payout ratios are a pivotal index of sustainability. They reveal the proportion of earnings a company distributes as dividends. Elevance Health Inc.'s current low EPS and FCF payout ratios reflect a conservative and future-proof financial approach, maintaining ample reinvestment capability while rewarding shareholders.
| Key figure | Ratio |
|---|---|
| EPS-based | 26.43 % |
| Free cash flow-based | 38.20 % |
The EPS payout ratio at 26.43 % and the FCF payout ratio at 38.20 % indicate a well-managed dividend strategy with room for future growth.
📉 Cashflow & Capital Efficiency
Understanding cash flow dynamics graduates the evaluation from static income statements, providing insight into liquidity and efficiency. Strong free cash flow, alongside reasonable capital expenditure levels, underscore operational adeptness in fueling sustainable dividends.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-based Compensation to Revenue | Free Cash Flow / Operating Cash Flow Ratio |
|---|---|---|---|---|---|
| 2024 | 5.30 % | 6.96 % | 21.63 % | 0.11 % | 78.37 % |
| 2023 | 6.16 % | 5.45 % | 16.08 % | 0.17 % | 83.92 % |
| 2022 | 5.89 % | 4.79 % | 13.72 % | 0.17 % | 86.28 % |
Elevance Health Inc. exhibits strong free cash flow, supporting its dividend ambitions and capital stability.
🗣️ Balance Sheet & Leverage Analysis
The assessment of a firm's balance sheet provides insights into its financial robustness and debt management efficiency. Elevance Health Inc.'s balanced leverage ratios signify fiscal discipline and a prudent approach to leveraging opportunities.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2024 | 0.76 | 0.27 | 0.43 | 2.19 | 2.01 | 2.01 | 2.83 |
| 2023 | 0.64 | 0.23 | 0.39 | 1.77 | 2.05 | 2.05 | 2.77 |
The balance sheet metrics illustrate strong financial discipline with a healthy leverage profile.
📉 Fundamental Strength & Profitability
Profitability metrics lie at the core of assessing a company's operational success and competitive edge. Elevance Health's robust ROE and diversified margin metrics reflect income quality and systematic reinvestment efficiencies.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2024 | 14.47 % | 5.12 % | 3.38 % | 5.14 % | 5.93 % | 100 % | 0 % |
| 2023 | 15.23 % | 5.50 % | 3.49 % | 5.10 % | 6.12 % | 100 % | 0 % |
Stable return metrics and profit margins substantiate Elevance Health Inc.'s profitability trajectory.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
Rating
Elevance Health Inc. holds a strong position with a robust dividend history and growth potential. The firm's financial metrics reflect sustainability and strategic fiscal management, positioning it as an attractive investment for income-focused investors. With consistent dividend hikes and controlled payout ratios, the company demonstrates commendable fiscal discipline, warranting a positive outlook.