December 13, 2025 a 03:31 pm
WRB: Dividend Analysis - W. R. Berkley Corporation
The W. R. Berkley Corporation demonstrates a robust dividend profile with a stable history of 40 years of dividend payments. The current yield of 2.67% is attractive in the insurance sector. However, the company did cut dividends in 2022, which is a factor investors may consider when evaluating stability. Nevertheless, with consistent dividend growth, WRB remains a significant contender for dividend-focused portfolios.
📊 Overview
W. R. Berkley operates in the Insurance sector, characterized by a consistent dividend profile. The dividend yield is at 2.67%, with a current dividend per share of 1.33 USD. With 40 years of dividend history, the last cut was observed in 2022.
| Parameter | Value |
|---|---|
| Sector | Insurance |
| Dividend yield | 2.67% |
| Current dividend per share | 1.33 USD |
| Dividend history | 40 years |
| Last cut or suspension | 2022 |
📈 Dividend History
With a rich history of 40 years, WRB's dividend payments demonstrate resilience despite a cut in 2022 which marks a critical observation for risk-adverse investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.85 |
| 2024 | 1.40 |
| 2023 | 1.29 |
| 2022 | 0.59 |
| 2021 | 0.89 |
🗣️ Dividend Growth
The dividend growth over the last three to five years illustrates a modest increase, marking a 16.06% growth over three years and 13.34% over five years. Such growth, while moderate, suggests a stable upward trajectory favorable to long-term investors.
| Time | Growth |
|---|---|
| 3 years | 16.06% |
| 5 years | 13.34% |
The average dividend growth is 13.34% over 5 years. This shows moderate but steady dividend growth.
🧮 Payout Ratio
A critical metric for dividend sustainability, WRB's payout ratio based on EPS is 27.73%, whereas the FCF-based payout ratio stands at 15.19%. These figures suggest a comfortable payout level, ensuring room for future growth or economic turbulence.
| Key figure | Ratio |
|---|---|
| EPS-based | 27.73% |
| Free cash flow-based | 15.19% |
With a low EPS payout ratio of 27.73% and significantly lower FCF payout at 15.19%, the company's dividends are well-covered, indicating financial resilience.
💰 Cashflow & Capital Efficiency
Cashflow and capital efficiency are key indicators of a company's ability to generate and utilize cash. WRB shows a robust free cash flow yield of 12.64%, and capex to operating cash flow is at 1.99%, implying efficient utilization of resources.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 15.27% | 14.88% | 12.41% |
| Earnings Yield | 7.51% | 7.15% | 6.81% |
| CAPEX to Operating Cash Flow | 2.87% | 1.81% | 2.05% |
| Stock-based Compensation to Revenue | 0.40% | 0.42% | 0.44% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.13% | 98.19% | 97.95% |
The cashflow stability and capital efficiency suggest strong financial health, with free cash yield providing a cushion for further investments or dividend payouts.
⚖️ Balance Sheet & Leverage Analysis
Evaluating balance sheet strength and leverage provides insight into a company's solvency and financial structure. WRB maintains a low debt-to-equity ratio, ensuring reduced financial risk in volatile markets.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.34 | 0.38 | 0.42 |
| Debt-to-Assets | 0.07 | 0.09 | 0.08 |
| Debt-to-Capital | 0.25 | 0.28 | 0.30 |
| Net Debt to EBITDA | 0.39 | 0.79 | 0.73 |
| Current Ratio | - | 0.43 | - |
| Quick Ratio | 47.97 | 0.43 | 83.09 |
| Financial Leverage | 4.83 | 4.41 | 5.02 |
With a strong current and quick ratio, WRB shows significant financial stability, making it well-positioned to meet short-term liabilities without compromising its long-term structure.
🏦 Fundamental Strength & Profitability
Deriving strength from high return metrics, WRB stands tall among its peers with a return on equity of over 20%, indicating exceptional profitability and efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 20.92% | 18.53% | 20.47% |
| Return on Assets | 4.33% | 4.20% | 4.08% |
| Net Margin | 12.88% | 11.38% | 12.37% |
| EBIT Margin | 17.53% | 15.50% | 16.57% |
| EBITDA Margin | 16.28% | 15.33% | 17.07% |
| Gross Margin | 22.89% | 22.44% | 21.83% |
| Research & Development to Revenue | 0% | 0% | 0% |
The impressive profitability margins and return ratios underscore WRB's operational efficiency, with substantial commitments towards enhancing shareholder value.
🔍 Price Development
📊 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
✅ Rating
With a high total dividend score of 35 out of 40, W. R. Berkley Corporation proves to be a strong candidate for investors seeking stable and growing dividend income backed by a robust financial standing. Investors may feel confident in the company's ability to sustain and potentially enhance its dividend payouts moving forward.