June 30, 2025 a 11:31 am
HIG: Dividend Analysis - The Hartford Financial Services Group, Inc.
The Hartford Financial Services Group, Inc. presents a compelling dividend profile, highlighted by its long-standing history of consistent dividend payouts and growth. With a stable dividend history spanning 30 years and no recent cuts or suspensions, it offers reliability for dividend-seeking investors. Moreover, the firm's disciplined approach in maintaining a reasonable payout ratio underscores a sustainable dividend policy.
📊 Overview
The Hartford Financial Services Group operates within the Insurance Sector, a field known for its stable cash flow and consistent dividend distribution potential. The company boasts a dividend yield of 1.56%, supported by a current dividend per share of USD 1.96. With an impressive 30-year track of dividend history and no recent dividend suspensions, it reflects a solid commitment to shareholder return.
| Sector | Dividend Yield (%) | Current Dividend per Share (USD) | Dividend History (years) | Last Cut or Suspension |
|---|---|---|---|---|
| Insurance | 1.56 | 1.96 | 30 | None |
📈 Dividend History
Examining the dividend history offers insights into the company's commitment to its shareholders. The Hartford Financial Services Group, Inc.'s track record of consistent dividend payments underscores its financial health and management effectiveness in cash flow management. This historical reliability can be a crucial factor for investors prioritizing income stability.
This chart indicates a steadfast growth in dividends, suggesting a consistently strong financial position.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.04 |
| 2024 | 1.93 |
| 2023 | 1.745 |
| 2022 | 1.58 |
| 2021 | 1.435 |
🔄 Dividend Growth
Dividend growth rates offer a glimpse into a company's potential for future dividend increases. This growth is crucial for safeguarding against inflationary pressures. Over the past three years, dividends have grown by 10.38%, and in the past five years, they have increased by 9.97%, demonstrating a steady yet moderate growth trajectory.
| 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.
Growth chart indicates a consistent upward trend, supporting the potential for ongoing increases.
🔔 Payout Ratio
The payout ratio is a critical indicator of dividend sustainability. It ensures that the company's earnings and cash flows can support the dividends without compromising growth or financial flexibility. The Hartford Financial Services Group's EPS-based payout ratio is 18.83%, and the free cash flow-based payout ratio stands at 9.85%, both of which are comfortably low, indicating strong dividend sustainability.
| Key Figure | Ratio (%) |
|---|---|
| EPS-based | 18.83 |
| Free Cash Flow-based | 9.85 |
A low payout ratio suggests that dividends are well-covered by earnings and free cash flow, offering reassurance of sustainability and potential for future raises.
💰 Cashflow & Capital Efficiency
These metrics evaluate how effectively a company turns its resources into cash flow and profitability. The ability to generate consistent cash flow ensures the capability to sustain dividends, invest in growth opportunities, and pay down debt. The following data illustrates Hartford's capital efficiency and cash flow robustness over recent years.
| Metric | 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 | 0.18% | 0.00% | 0.59% |
| Free Cash Flow / Operating Cash Flow | 97.55% | 94.90% | 95.63% |
With a strong free cash flow yield and low CAPEX spending, Hartford demonstrates a commendable efficiency in utilizing its capital, which bodes well for its dividend-paying capabilities.
🏢 Balance Sheet & Leverage Analysis
Leveraging financial ratios helps assess the company's use of debt versus equity and the level of risk associated with its capital structure. The data below highlights The Hartford Financial Services Group's leverage and liquidity position, essential for understanding its financial resilience.
| Metric | 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 | 0.00 | 0.69 | 24.79 |
| Quick Ratio | 16.69 | 0.69 | 29.81 |
| Financial Leverage | 4.92 | 5.01 | 5.36 |
Hartford maintains a disciplined debt management strategy, reflected in its modest debt ratios and robust quick ratio, ensuring optimal liquidity and financial flexibility.
💼 Fundamental Strength & Profitability
Understanding fundamental and profitability measures provides insights into operational efficiency and the potential for long-term value creation. Hartford’s metrics illustrate its ability to generate profits relative to its assets and equity, further enhancing its dividend sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 18.92% | 16.34% | 13.34% |
| Return on Assets | 3.84% | 3.26% | 2.49% |
| Net Margin | 11.79% | 10.21% | 8.13% |
| EBIT Margin | 15.34% | 13.40% | 11.05% |
| EBITDA Margin | 15.34% | 15.48% | 13.84% |
| Gross Margin | 100% | 100% | 78.40% |
| R&D to Revenue | 0% | 0% | 0% |
The Hartford Financial Services Group, Inc. showcases solid returns on equity and assets, indicating effective use of shareholder capital and asset management to drive profitability.
📉 Price Development
This chart captures the stock's price movement, reflecting market sentiment and external influences on value appreciation.
⚖️ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
✅ Rating
Overall, The Hartford Financial Services Group, Inc. offers a strong dividend profile with consistent payout history and a manageable payout ratio. While the current yield is modest, its growth rate and stability provide a reliable source of income. This stock is well-suited for investors seeking sustained growth and income stability.