July 28, 2025 a 07:31 am
PGR: Dividend Analysis - The Progressive Corporation
The Progressive Corporation is a key player in the insurance sector, exhibiting a well-rounded dividend profile with a 1.87% dividend yield. The company has a robust dividend history, maintaining payments for over four decades. Despite recent cuts, it reflects solid fundamentals that align with stable future dividend prospects.
📊 Overview
The Progressive Corporation operates within the insurance sector, renowned for its remarkable dividend history of 40 consecutive years of payments. Despite a recent cut in 2022, the current dividend yield stands at 1.87%, with a dividend per share of $1.1648. This longstanding commitment cushions the market's perception against occasional disruptions.
| Metric | Detail |
|---|---|
| Sector | Insurance |
| Dividend yield | 1.87% |
| Current dividend per share | $1.1648 USD |
| Dividend history | 40 years |
| Last cut or suspension | 2022 |
🗣️ Dividend History
The company's dividend history is significant, manifesting its ability to sustain payouts over 40 years. This historical data underscores PGR's resilience and commitment even in challenging periods, which is crucial for investor confidence.
| Year | Dividend per Share |
|---|---|
| 2025 | $4.80 |
| 2024 | $1.15 |
| 2023 | $0.40 |
| 2022 | $0.40 |
| 2021 | $6.40 |
📈 Dividend Growth
Understanding dividend growth is crucial for forecasting future returns. Over the past 3 years, dividends have shrunk by -0.44%, and over 5 years, by -0.16%. This negative growth indicates the need for cautious optimism moving forward as the market evaluates its strategies.
| Time | Growth |
|---|---|
| 3 years | -0.44% |
| 5 years | -0.16% |
The average dividend growth is -0.16% over 5 years. This shows moderate but steady dividend shrinkage, requiring strategic investment plans.
Payout Ratio
The payout ratio is a fundamental indicator of the dividend's sustainability. The EPS-based payout ratio is 6.54%, and the free cash flow-based is 4.34%. These low ratios suggest a well-cushioned position to maintain payouts even under fiscal pressure.
| Key figure | Ratio |
|---|---|
| EPS-based | 6.54% |
| Free cash flow-based | 4.34% |
Given these ratios, PGR appears to be leveraging its earnings efficiently to retain a shareholder-friendly approach despite industry volatility.
Cashflow & Capital Efficiency
Evaluation of cash flow and capital efficiency is indispensable for assessing the operational vigor and sustainability of returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 10.57% | 11.15% | 8.65% |
| Earnings Yield | 6.04% | 4.19% | 0.95% |
| CAPEX to Operating Cash Flow | 1.88% | 2.37% | 4.26% |
| Stock-based Compensation to Revenue | 0.16% | 0.20% | 0.25% |
| Free Cash Flow / Operating Cash Flow Ratio | 98.11% | 97.63% | 95.74% |
The steady free cash flow and low CAPEX ratio indicate efficient capital utilization and stability in cash flows.
Balance Sheet & Leverage Analysis
Analyzing leverage and balance sheet items is vital for judging financial health and resilience in downturns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 26.94% | 33.97% | 41.06% |
| Debt-to-Assets | 6.52% | 7.77% | 9.29% |
| Debt-to-Capital | 21.22% | 25.36% | 29.11% |
| Net Debt to EBITDA | 0.60 | 1.25 | 4.28 |
| Current Ratio | N/A | N/A | 0.80 |
| Quick Ratio | N/A | N/A | 1.83 |
| Financial Leverage | 4.13 | 4.37 | 4.42 |
The decreasing debt-to-capital ratio from 2022 to 2024 suggests improving financial stability. However, the net debt to EBITDA needs close monitoring, despite showing improvement over recent years.
Fundamental Strength & Profitability
Crucial for assessing the company’s operational efficiency and overall profitability over time.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 33.14% | 19.25% | 4.54% |
| Return on Assets | 8.02% | 4.40% | 1.03% |
| Net Margin | 11.26% | 6.29% | 1.46% |
| EBIT Margin | 14.59% | 8.33% | 2.35% |
| EBITDA Margin | 14.97% | 8.79% | 2.97% |
| Gross Margin | 100% | 100% | 100% |
| R&D to Revenue | 0% | 0% | 0% |
The strong return on equity and assets reflect efficient use of investments and internal resources, suggesting robust operational management.
⚠️ Price Development
✅ Dividend Scoring System
| Category | Score | Graph |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 29/40
Rating
The Progressive Corporation shows a resilient dividend profile with commendable historical commitment. Despite recent growth setbacks, its stable financial foundation supports its consistent payout potential. Investors might consider this stock for reliable income with cautious growth expectations.