July 15, 2025 a 03:32 pm
📊 HIG: Dividend Analysis - The Hartford Financial Services Group, Inc.
The Hartford exhibits a commendable dividend profile with a respectable yield and robust dividend history. The company's consistent dividend growth over the past decades marks it as a steady income investment. The financials depict stability, backed by moderate payout ratios, ensuring sustainable dividend distributions.
Overview
The Hartford Financial Services Group, Inc. operates within the Financial sector, providing a consistent dividend yield of 1.93%. With a current dividend per share of 1.96 USD, the company has maintained a solid history of 30 years without cuts or suspensions, highlighting its commitment to shareholder returns.
| Metric | Value |
|---|---|
| Sector | Financial |
| Dividend Yield | 1.93% |
| Current Dividend per Share | 1.96 USD |
| Dividend History | 30 years |
| Last Cut or Suspension | None |
Dividend History
The Hartford's dividend history demonstrates reliability with a continuous upward trajectory in payments, crucial for long-term income investors seeking stable returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.04 |
| 2024 | 1.93 |
| 2023 | 1.745 |
| 2022 | 1.580 |
| 2021 | 1.435 |
Dividend Growth
Examining the dividend growth over the past 3 and 5 years reveals The Hartford's commitment to enhancing shareholder value through consistent dividend increases.
| 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
The payout ratios are essential indicators of the dividend sustainability, reflecting the proportion of earnings paid as dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 18.83% |
| Free Cash Flow-based | 9.85% |
The low EPS and FCF payout ratios suggest a conservative approach, indicating ample room for future dividend increases.
Cashflow & Capital Efficiency
The efficiency of cash flow utilization is critical for maintaining liquidity and funding operations. It highlights the company's ability to generate free cash flow relative to its operating cash flow.
| 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% | 0% | 0.59% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.55% | 94.91% | 95.63% |
The robust ratios underline The Hartford's efficient use of capital, ensuring high levels of residual cash flow.
Balance Sheet & Leverage Analysis
The analysis of leverage provides insights into the company's financial strategy regarding debt and equity financing.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.27 | 0.28 | 0.32 |
| 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 | 16.69 | 0.69 | 24.79 |
| Quick Ratio | 16.69 | 0.69 | 29.81 |
| Financial Leverage | 4.92 | 5.01 | 5.36 |
Stable leverage ratios coupled with strong liquidity metrics reflect The Hartford's prudent capital management strategy.
Fundamental Strength & Profitability
The company's profitability is critical, measured through returns on investment alongside its operational efficiency depicted by profit margins.
| 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 demonstrates strong profitability, supported by expanding margins and high returns on capital and equity.
Price Development
Dividend Scoring System
| Criterion | Score | |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 5 |
Total Score: 38/40
Rating
🗣️ Based on the comprehensive analysis, The Hartford Financial Services Group, Inc. is a strong contender for dividend-focused investors. With stable payouts, moderate growth, and robust financial metrics, it offers a resilient investment proposition with sustainable income potential.