June 28, 2026 a 03:31 am
MMC: Dividend Analysis - Marsh & McLennan Companies, Inc.
Marsh & McLennan Companies, Inc., with a dividend yield of 2.10%, demonstrates a commitment to returning value to its shareholders. The firm's long-standing dividend history of 44 years without any recent cuts or suspensions reflects stability and potential reliability for income investors. While the growth is moderate, the consistent payout and solidified market presence are positive indicators.
📊 Overview
Marsh & McLennan operates in a stable sector, providing insurance and consulting services. This stability is underscored by its current dividend per share of 3.46 USD, which yields a competitive 2.10% in the market.
| Metric | Value |
|---|---|
| Sector | Insurance and Consulting |
| Dividend Yield | 2.10% |
| Current Dividend Per Share | 3.46 USD |
| Dividend History | 44 years |
| Last Cut or Suspension | None |
📈 Dividend History
The company's dividend history signifies its consistent performance in rewarding shareholders. A stable dividend provides income stability and may protect against market volatility.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.8 |
| 2025 | 3.43 |
| 2024 | 3.05 |
| 2023 | 2.60 |
| 2022 | 2.25 |
📊 Dividend Growth
Measuring dividend growth is crucial as it reflects the company’s capacity to increase payouts, providing income protection against inflation. The firm's commitment to increase dividends over time enhances shareholder value.
| Time | Growth |
|---|---|
| 3 years | 15.09% |
| 5 years | 13.26% |
The average dividend growth is 13.26% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
A balanced payout ratio indicates a firm's ability to sustain its dividend payments without compromising on growth. Marsh & McLennan's payout ratios suggest a well-managed financial policy.
| Key Figure | Ratio |
|---|---|
| EPS-based | 43.54% |
| Free Cash Flow-based | 34.52% |
The EPS payout ratio of 43.54% and FCF payout ratio of 34.52% appear sustainable, allowing for future expansion and dividend payments.
🗣️ Cashflow & Capital Efficiency
Strong cash flow allows a company to take advantage of growth opportunities and provides a buffer in economic downturns. Evaluation of capital efficiency metrics provides an insight into how well a company utilizes its financial resources.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.10% | 3.81% | 5.49% |
| Earnings Yield | 4.01% | 3.88% | 4.57% |
| CAPEX to Operating Cash Flow | 9.77% | 7.35% | 5.70% |
| Stock-based Compensation to Revenue | 1.60% | 1.50% | 1.46% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.23% | 92.65% | 94.50% |
The firm demonstrates robust cash flow stability and efficient capital utilization, indicated by its favorable free cash flow and operating cash flow ratios.
⚠️ Balance Sheet & Leverage Analysis
An assessment of the balance sheet and leverage ratios is critical for evaluating a company's financial health, debt management, and its ability to leverage resources efficiently.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 126.62% | 163.86% | 370.45% |
| Debt-to-Assets | 32.14% | 38.71% | 36.53% |
| Debt-to-Capital | 55.87% | 62.10% | 97.37% |
| Net Debt to EBITDA | 1.91 | 2.81 | 20.62 |
| Current Ratio | 109.87% | 113.32% | 110.16% |
| Quick Ratio | 109.87% | 113.32% | 110.16% |
| Financial Leverage | 393.98% | 423.33% | 1013.99% |
Despite high leverage, Marsh & McLennan appears to manage its debt levels judiciously, maintaining substantial liquidity ratios and solid financial flexibility.
✅ Fundamental Strength & Profitability
Examining profitability and fundamental strength metrics helps to gauge a firm's overall performance and potential for growth.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 30.81% | 30.43% | 718.48% |
| Return on Assets | 7.82% | 7.19% | 7.09% |
| Net Margin | 16.52% | 16.60% | 15.42% |
| EBIT Margin | 24.65% | 25.27% | - |
| EBITDA Margin | 27.78% | 28.32% | 3.37% |
| Gross Margin | 42.39% | 42.78% | 0.00% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Marsh & McLennan demonstrates robust profitability and efficiency metrics, though the absence of R&D expenses might indicate limited investment in innovation.
📈 Price Development
📉 Dividend Scoring System
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Dividend Score: 32/40
🏆 Rating
Overall, Marsh & McLennan Companies, Inc. presents a strong dividend profile with reliable stability and moderate growth. The company's robust fundamental metrics and consistent payout history make it a compelling choice for income-focused investors seeking steady returns with moderate capital appreciation potential.
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