July 31, 2025 a 07:31 am
TRV: Dividend Analysis - The Travelers Companies, Inc.
🗣️ The Travelers Companies, Inc. presents a stable dividend profile with a history of 41 consecutive years of payments, reinforcing investor confidence. A current yield of 1.66% and a robust EPS payout ratio of 18% highlight effective capital management. The company's balance sheet suggests a well-managed financial structure, primed for sustainable growth.
📊 Overview
Travelers Companies operates within the Financial sector, offering a well-rounded dividend yield of 1.66%. With a consistent dividend increase history over 41 years and no recent cuts or suspensions, the company exemplifies robust financial health and commitment to shareholder returns.
| Metric | Details |
|---|---|
| Sector | Financial |
| Dividend yield | 1.66 % |
| Current dividend per share | 4.17 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📈 Dividend History
Historic dividend data reveals a sustained increase, reinforcing the company's commitment to shareholder value. This approach is a reliable indicator of stability for conservative investors.
| Year | Dividend per share (USD) |
|---|---|
| 2025 | 3.25 |
| 2024 | 4.15 |
| 2023 | 3.93 |
| 2022 | 3.67 |
| 2021 | 3.49 |
🚀 Dividend Growth
Examining the dividend growth shows modest acceleration over defined periods, essential for evaluating long-term income potential.
| 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 is crucial for assessing dividend sustainability. A lower ratio suggests a well-managed balance between rewarding shareholders and maintaining growth-capital.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 17.96 % |
| Free cash flow-based | 9.75 % |
The EPS-based payout ratio of 17.96% and FCF-based payout ratio of 9.75% reveal a conservative approach, ensuring dividend commitments are backed by robust earnings and cash flow.
💰 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency metrics highlights the company's competency in generating and utilizing cash effectively, driving sustainable growth and returns.
| 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 | -0.26% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | 1 | 1 |
These figures indicate a robust cash flow generation and efficient capital usage, essential for supporting ongoing operations and strategic initiatives.
📊 Balance Sheet & Leverage Analysis
A sound balance sheet is pivotal in gauging financial stability and risk. These leverage metrics provide critical insight into the company’s debt handling capabilities.
| 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 | 1.11 | 1.65 | 1.43 |
| Current Ratio | 0 | 0 | 0 |
| Quick Ratio | 29.33 | 27.38 | 23.58 |
| Financial Leverage | 4.78 | 5.05 | 5.37 |
Analyzing these metrics asserts a strong financial structure, demonstrating controlled leverage and ample liquidity to meet obligations.
📊 Fundamental Strength & Profitability
Evaluating fundamental strength and profitability metrics determines the company's ability to generate sustainable returns over time.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.94% | 12.00% | 13.18% |
| Return on Assets | 3.75% | 2.37% | 2.46% |
| Net Margin | 10.77% | 7.23% | 7.71% |
| EBIT Margin | 14.16% | 9.06% | 10.05% |
| EBITDA Margin | 14.16% | 10.80% | 12.28% |
| Gross Margin | 100% | 100% | 100% |
| Research & Development to Revenue | 0% | 0% | 0% |
The company exhibits resilient profitability, ensuring sustainable growth and yielding favorable returns on equity and assets.
📈 Price Development
✅ Dividend Scoring System
| Category | Score | Visual |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 36/40
🌟 Rating
The Travelers Companies, Inc. presents a strong dividend profile with a consistent track record of payments. Its robust financial structure and effective capital management strategies ensure the sustainability of dividends, making it an attractive option for income-focused investors. The comprehensive score of 36/40 suggests a favorable outlook, recommending TRV as a Reliable Dividend Investment.