January 29, 2026 a 02:46 am
PGR: Dividend Analysis - The Progressive Corporation
The Progressive Corporation presents an intriguing dividend profile with its impressive history of 41 consecutive years of dividend payments. Despite a recent cut in 2022, the company shows resilience amongst its peers in the financial sector. With a robust market presence and solid fundamentals, PGR continues to maintain a compelling dividend yield, suggesting attractive income opportunities for dividend-focused investors.
📊 Overview
The Progressive Corporation, positioned within the financial sector, demonstrates a noteworthy dividend performance. This section breaks down its key figures and historical context.
| Indicator | Details |
|---|---|
| Sector | Financial |
| Dividend Yield | 6.55% |
| Current Dividend Per Share | 4.90 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | 2022 |
📈 Dividend History
An examination of The Progressive Corporation's dividend history reveals insights into long-term shareholder value creation. Such a consistent track record underscores investor confidence and affirms financial strength.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 13.6 |
| 2025 | 4.9 |
| 2024 | 1.15 |
| 2023 | 0.4 |
| 2022 | 0.4 |
📈 Dividend Growth
The growth metric provides a forward-looking view by indicating the momentum of dividend payouts over time. Consistent increases highlight potential for income growth for investors.
| Time | Growth |
|---|---|
| 3 years | 1.31% |
| 5 years | 0.13% |
The average dividend growth is 0.13% over 5 years. This shows moderate but steady dividend growth.
📈 Payout Ratio
The payout ratio is crucial, reflecting the portion of earnings distributed as dividends. It provides insight into dividend sustainability and the potential for future increases.
| Key figure | Ratio |
|---|---|
| EPS-based | 28.37% |
| Free cash flow-based | 16.85% |
The payout ratios, with 28.37% (EPS) and 16.85% (FCF), suggest ample room for dividend growth, indicating a responsible distribution that won't overly encumber the company's growth potential.
📊 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency provides insight into the company's ability to sustain and grow its dividends from a cash perspective, reflecting operational robustness and prudent financial management.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | N/A | 10.57% | 11.15% |
| Earnings Yield | 7.58% | 6.04% | 4.19% |
| CAPEX to Operating Cash Flow | N/A | 1.89% | 2.37% |
| Stock-based Compensation to Revenue | N/A | 0.16% | 0.20% |
| Free Cash Flow / Operating Cash Flow Ratio | N/A | 98.11% | 97.63% |
The cash flow metrics demonstrate a solid capability to cover dividends with its internal cash generation, highlighting Prudential's efficiency in utilizing its capital.
📊 Balance Sheet & Leverage Analysis
A strong balance sheet is indicative of a company's capacity to withstand financial stresses and fund expansion and dividend obligations without undue strain.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0 | 0.27 | 0.34 |
| Debt-to-Assets | 0 | 0.07 | 0.08 |
| Debt-to-Capital | 0 | 21.22% | 25.36% |
| Net Debt to EBITDA | 0 | 0.60 | 1.25 |
| Current Ratio | 0 | 0 | 0 |
| Quick Ratio | 0 | 0 | 0 |
| Financial Leverage | 19.94 | 4.13 | 4.37 |
PGR's leverage ratios reveal a conservative use of debt, aligned with a strong balance sheet, essential for ongoing dividend reliability and growth.
📊 Fundamental Strength & Profitability
Profitability metrics and fundamental strength are central in determining the firm's long-term capability to sustain and enhance dividend payments.
| Measure | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 2.23 | 0.33 | 0.19 |
| Return on Assets | 0.112 | 0.08 | 0.044 |
| Margins: Net | 12.72% | 11.26% | 6.29% |
| EBIT Margin | 16.06% | 14.59% | 8.33% |
| EBITDA Margin | 16.38% | 14.97% | 8.79% |
| R&D to Revenue | 0% | 0% | 0% |
The margins reflect a healthy profitability profile, pivotal for supporting future dividend increases, with a strong focus on maintaining operational efficiency.
💹 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Star Rating |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
✅ Rating
Overall, The Progressive Corporation offers a robust dividend package, characterized by a strong yield, consistent history, and sound financial health. It garners a high score in the dividend scoring system, underscoring its attractiveness to dividend-focused investors. The recommendation is to maintain a positive outlook for investors seeking stable income with moderate growth potential.