June 10, 2026 a 07:31 am
ELV: Dividend Analysis - Elevance Health Inc.
Elevance Health Inc. showcases a promising dividend profile with a consistent track record of payments. Despite its conservative payout ratios and modest dividend yield, the company's growth trajectory in dividends offers a stable and reliable income stream for shareholders. Key financial health indicators underline a solid foundation for continued dividend reliability. However, the lower dividend yield suggests potential limitations in immediate income returns.
Overview 📊
Elevance Health Inc., operating within the healthcare sector, provides a stable and long-term focused dividend yielding approximately 1.62%. With 16 years of dividend history, the consistency is notable, despite the absence of recent cuts or suspensions. These elements provide assurance to dividend-focused investors looking for reliability in their portfolio.
| Metrics | Details |
|---|---|
| Sector | Healthcare |
| Dividend yield | 1.62 % |
| Current dividend per share | 6.89 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
Dividend History 🗣️
A robust history of increasing dividends underlines the company's commitment to returning value to shareholders. Understanding these trends provides insight into future expectations and the management's ongoing dividend policy assurance.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.44 |
| 2025 | 6.84 |
| 2024 | 6.52 |
| 2023 | 5.92 |
| 2022 | 5.12 |
Dividend Growth 📈
Observing the significant growth in dividends over 3 and 5 years indicates Elevance Health's strategic positioning for future growth. This growth is crucial as it hints at the company's profitability and its management's ability to navigate economic hurdles.
| Time | Growth |
|---|---|
| 3 years | 10.13 % |
| 5 years | 12.47 % |
The average dividend growth is 12.47% over 5 years. This shows a moderate but steady dividend growth which is promising for long-term investors.
Payout Ratio ✅
With an EPS-based payout ratio of approximately 29% and free cash flow-based at 23.2%, Elevance Health portrays a well-balanced approach to dividend payouts. These metrics represent healthy levels, leaving ample room for dividend increases or retention for business growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 29 % |
| Free cash flow-based | 23.21 % |
A 29% payout ratio based on EPS indicates a sustainable dividend policy, allowing Elevance Health ample flexibility to reinvest in growth opportunities and shield against economic fluctuations.
Cashflow & Capital Efficiency 💧
Cash flow metrics highlight Elevance Health's ability to generate sufficient cash for operations and growth. The solid free cash flow yield and earnings yield showcase efficient capital utilization and a potential buffer against downturns.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.08 % | 5.30 % | 6.16 % |
| Earnings Yield | 7.28 % | 6.96 % | 5.45 % |
| CAPEX to Operating Cash Flow | 26.01 % | 21.63 % | 16.08 % |
| Stock-based Compensation to Revenue | 0.14 % | 0.11 % | 0.17 % |
| Free Cash Flow / Operating Cash Flow Ratio | 0.74 | 0.78 | 0.84 |
| Evaluation of Cashflow Stability | Excellent | Good | Very Good |
Overall, Elevance Health demonstrates stable cash flow generation with efficient capital allocation, which sustains its ability to maintain dividends while supporting growth.
Balance Sheet & Leverage Analysis 📉
Balance sheet metrics indicate a stable financial position with balanced leverage ratios, ensuring ongoing liquidity and stability in adverse market conditions.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.76 | 0.79 | 0.68 |
| Debt-to-Assets | 0.27 | 0.28 | 0.24 |
| Debt-to-Capital | 0.43 | 0.44 | 0.40 |
| Net Debt to EBITDA | 2.46 | 2.33 | 1.92 |
| Current Ratio | 1.24 | 1.10 | 0.97 |
| Quick Ratio | 1.24 | 1.09 | 0.97 |
The favorable leverage ratios and liquidity metrics attest to Elevance Health's ability to manage its liabilities effectively, further boosting investor confidence in its long-term viability.
Fundamental Strength & Profitability 💪
Elevance Health's fundamental ratios illustrate robust profitability and efficient asset utilization, vital for sustaining growth and offering attractive returns to investors.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 12.90% | 14.47% | 15.23% |
| Return on Assets | 4.66% | 5.12% | 5.50% |
| Net Margin | 2.84% | 3.38% | 3.49% |
| EBIT Margin | 4.07% | 5.14% | 5.10% |
| Gross Margin | 25.56% | 27.85% | 27.44% |
| R&D to Revenue | N/A | N/A | N/A |
These indicators reflect sound operational efficiency and highlight Elevance Health's potential for continued strong market performance.
Price Development 📈
Dividend Scoring System 📋
| Criteria | Score | Rating |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34/40
Rating 📊
Elevance Health Inc. stands out as a reliable investment option for investors seeking stability through dividends. The company's strong financial health, effective capital management, and strategic growth in dividends buttress its comprehensive investment appeal. While the yield may not be aggressive, its growth prospects and operational resilience provide a well-rounded, quality investment opportunity.
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