June 10, 2025 a 12:46 pm
HIG: Dividend Analysis - The Hartford Financial Services Group, Inc.
The Hartford Financial Services Group, Inc. presents a compelling profile with a diverse financial services portfolio. As a leader in the industry, its commitment to shareholder returns through consistent dividends over decades highlights its reliability and market strength.
📊 Overview
Gain insights into The Hartford's dividend profile, showcasing sector involvement and key dividend metrics.
| Attribute | Value |
|---|---|
| Sector | Insurance and Financial Services |
| Dividend yield | 1.56% |
| Current dividend per share | 1.96 USD |
| Dividend history | 30 years |
| Last cut or suspension | None |
📈 Dividend History
The company's long-standing dividend history signifies stability, cushioning investors from market volatility. Understanding past dividend distributions can inform future expectations.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.04 |
| 2024 | 1.93 |
| 2023 | 1.745 |
| 2022 | 1.580 |
| 2021 | 1.435 |
📉 Dividend Growth
This section evaluates the company's dividend growth over time, reflecting its capacity for sustainable increases benefiting long-term shareholders.
| Time | Growth |
|---|---|
| 3 years | 10.38% |
| 5 years | 9.97% |
The average dividend growth is 9.97% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios indicate the proportion of earnings and cash flows used for dividends, assessing the sustainability of distributions.
| Key figure | Ratio |
|---|---|
| EPS-based | 18.83% |
| Free cash flow-based | 9.85% |
An EPS payout ratio of 18.83% and an FCF payout ratio of 9.85% suggest that The Hartford's dividend payments are highly sustainable, supporting potential for future increases.
💰 Cashflow & Capital Efficiency
Cash flow analysis is crucial for determining dividend security and growth potential, reflecting how well a company manages its cash resources and capital expenses.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 17.93% | 16.02% | 15.56% |
| Earnings Yield | 9.68% | 10.02% | 7.39% |
| CAPEX to Operating Cash Flow | 2.45% | 5.09% | 4.37% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.59% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.55% | 94.91% | 95.63% |
The Hartford's consistent cash flow metrics highlight strong cash management practices, essential for sustaining dividend payments and capital investments.
🔍 Balance Sheet & Leverage Analysis
Analyzing leverage metrics provides insight into The Hartford's financial stability and ability to service debt, essential for long-term solvency.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 26.55% | 28.46% | 31.96% |
| Debt-to-Assets | 5.40% | 5.68% | 5.97% |
| Debt-to-Capital | 20.98% | 22.15% | 24.22% |
| Net Debt to EBITDA | 1.03 | 1.12 | 1.33 |
| Current Ratio | 0 | 0.69 | 24.79 |
| Quick Ratio | 16.69 | 0.69 | 29.81 |
| Financial Leverage | 4.92 | 5.01 | 5.36 |
The Hartford maintains a prudent leverage position, indicating a robust balance between debt and equity, essential for expanding financial opportunities and sustaining dividends.
📈 Fundamental Strength & Profitability
Exploring profitability metrics can shed light on The Hartford's efficiency in generating profits relative to its resources, a critical component for evaluating inherent value and growth potential.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 18.92% | 16.34% | 13.34% |
| Return on Assets | 3.84% | 3.26% | 2.49% |
| Margins | |||
| Net | 11.79% | 10.21% | 8.13% |
| EBIT | 15.34% | 13.40% | 11.05% |
| EBITDA | 15.34% | 15.48% | 13.84% |
| Gross | 100% | 100% | 78.40% |
| R&D to Revenue | 0% | 0% | 0% |
Strong profitability metrics ensure The Hartford's ability to reward investors and reinvest into business operations efficiently. High returns on equity underline its efficiency in converting shareholders' equity into net income.
📈 Price Development
🗣️ Dividend Scoring System
A comprehensive scoring system assessing the major attributes that indicate dividend health and future reliability.
| Criterion | Score | Visual |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Overall score: 33/40
✅ Rating
In summary, The Hartford Financial Services Group, Inc. offers a robust dividend profile characterized by solid fundamentals, sustainable payout practices, and consistent growth. Its financial stability and prudent management underscore a promising prospect for current and prospective investors, marking it as a sound investment within the insurance and financial services sector.