Yahoo Finance The Hartford Financial Services Group Inc's Dividend Analysis
An In-depth Look at Upcoming Dividends and Historical Performance
The Hartford Financial Services Group Inc (NYSE:HIG) recently announced a dividend of $0.47 per share, set to be payable on 2024-07-02, with the ex-dividend date on 2024-06-03. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. This analysis uses GuruFocus data to evaluate The Hartford Financial Services Group Inc's dividend performance and its sustainability prospects.
Company Overview
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The Hartford Financial Services Group Inc provides a broad spectrum of property and casualty insurance, group benefits, and mutual fund services, catering to both individual and corporate clients. Its operations are divided into five segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, and Hartford Funds, alongside a Corporate category.
Exploring The Hartford Financial Services Group Inc's Dividend History
Since 1996, The Hartford Financial Services Group Inc has maintained a steady record of dividend payments, distributed quarterly. Since 2009, the company has consistently increased its dividend, earning it the status of a dividend achievera recognition given to companies that have raised their dividends annually for at least 15 consecutive years.
Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Assessing Dividend Yield and Growth
Currently, The Hartford Financial Services Group Inc boasts a trailing dividend yield of 1.73% and a forward dividend yield of 1.82%, indicating expected dividend increases over the next year. Over the past three years, the company's annual dividend growth rate was 10.30%, which slightly decreased to 9.70% over a five-year period. Over the last decade, the growth rate impressively stood at 12.20% annually.
As of today, based on the five-year growth rate, the 5-year yield on cost for The Hartford Financial Services Group Inc's stock is approximately 2.75%.
The Sustainability of Dividends: Payout Ratio and Profitability
The sustainability of dividends is often gauged by the dividend payout ratio, which for The Hartford Financial Services Group Inc stands at 0.19 as of 2024-03-31. This low ratio suggests that the company retains a substantial portion of its earnings, which supports growth and buffers against downturns. Additionally, the company's profitability rank is 7 out of 10, reflecting strong earnings capabilities relative to its peers, with net profits reported in 9 of the past 10 years.
Future Growth Prospects
The Hartford Financial Services Group Inc's growth rank is also 7 out of 10, indicating a robust growth trajectory. The company's revenue per share and a 3-year revenue growth rate of approximately 11.50% per year outperform about 64.42% of global competitors. Furthermore, its 3-year EPS growth rate of approximately 21.10% per year and a 5-year EBITDA growth rate of 12.10% further underscore its potential for sustained dividend payouts.
Conclusion: A Reliable Dividend Payer with Promising Growth
The Hartford Financial Services Group Inc not only offers a reliable dividend but also demonstrates potential for continued financial growth and stability. With its consistent dividend increases, low payout ratio, and robust growth metrics, the company stands out as a promising candidate for dividend investors. For those looking to expand their portfolio with high-dividend yield stocks, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
