April 28, 2025 a 03:31 pm
TRV: Dividend Analysis - The Travelers Companies, Inc.
Established as a robust presence in the insurance sector, The Travelers Companies exhibits notable dividend longevity with over four decades of uninterrupted payouts. Despite a modest yield, the firm's disciplined financial management underscores its resilience and growth. Through a steady trajectory of dividend increments, TRV maintains investor confidence.
📊 Overview
The Travelers Companies positions itself as a reliable dividend stock within the financial landscape, marked by a consistent dividend history of 41 years and prudent fiscal governance.
| Attribute | Value |
|---|---|
| Sector | Insurance |
| Dividend yield | 1.64% |
| Current dividend per share | 4.17 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📈 Dividend History
Consistency in dividend payments reflects The Travelers Companies' commitment to shareholders. Historical payout patterns provide a lens into future reliability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.15 |
| 2024 | 4.15 |
| 2023 | 3.93 |
| 2022 | 3.67 |
| 2021 | 3.49 |
📈 Dividend Growth
Dividend growth indicates a company's ongoing profitability and confidence in its cash flow generation.
| Time | Growth |
|---|---|
| 3 years | 5.94% |
| 5 years | 5.14% |
The average dividend growth is 5.14% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio provides insight into dividend sustainability. Lower ratios suggest potential for future increases.
| Key figure | Ratio |
|---|---|
| EPS-based | 22.16% |
| Free cash flow-based | 10.53% |
With an EPS payout ratio of 22.16% and a free cash flow payout ratio of 10.53%, The Travelers Companies showcases substantial room to maneuver while maintaining dividends.
💰 Cashflow & Capital Efficiency
The cash flow metrics indicate a company's operational efficiency and its ability to manage capital expenditures effectively.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 16.52% | 17.62% | 14.55% |
| Earnings Yield | 9.10% | 6.84% | 6.40% |
| CAPEX to Operating Cash Flow | 0% | 0% | 0% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | 1 | 1 |
The cash flow ratios indicate strong cash generation and prudent capital allocation with a free cash flow yield exceeding earnings yield, ensuring robust capital efficiency.
📚 Balance Sheet & Leverage Analysis
A healthy balance sheet mitigates financial risk and supports sustainable dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 28.83% | 32.23% | 33.82% |
| Debt-to-Assets | 6.03% | 6.37% | 6.30% |
| Debt-to-Capital | 22.38% | 24.37% | 25.27% |
| Net Debt to EBITDA | 1.12 | 1.65 | 1.43 |
| Current Ratio | 0 | 0 | 3.35 |
| Quick Ratio | 0 | 0 | 3.35 |
| Financial Leverage | 4.78 | 5.06 | 5.37 |
The leverage metrics reflect controlled debt levels with strategic leverage employed to enhance shareholder value.
📈 Fundamental Strength & Profitability
Assessing profitability and fundamental indicators is crucial for understanding long-term value creation potential.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.94% | 12.00% | 13.18% |
| Return on Assets | 3.75% | 2.37% | 2.46% |
| Margins: Net | 10.77% | 7.23% | 7.71% |
| EBIT | 14.16% | 9.06% | 10.05% |
| EBITDA | 14.16% | 10.80% | 12.28% |
| Gross | 100% | 100% | 100% |
The profitable metrics underscore strong operational efficiency and potential for sustained returns. ROE highlights robust capital use.
📈 Price Development
🗣️ Dividend Scoring System
| Feature | Description | Score |
|---|---|---|
| Dividend yield | 1.64% | |
| Dividend Stability | 41 years | |
| Dividend growth | Moderate | |
| Payout ratio | Low | |
| Financial Stability | Good | |
| Dividend Continuity | Continuous | |
| Cashflow Coverage | Excellent | |
| Balance Sheet Quality | Strong |
Overall Score: 36/40
✅ Rating
The Travelers Companies, Inc. manifests consistent dividend payments and robust financial structure, making it a compelling option for investors seeking stable dividend income. The moderate yield is compensated by strong dividend growth and stability, justified by impressive payout metrics and operational efficiency.