Delving into the Dividend Details of Elevance Health Inc
Elevance Health Inc(ELV, Financial) recently announced a dividend of $1.63 per share, payable on 2024-03-22, with the ex-dividend date set for 2024-03-07. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Elevance Health Inc's dividend performance and assess its sustainability.
What Does Elevance Health Inc Do?
Elevance Health remains one of the leading health insurers in the U.S., providing medical benefits to 48 million medical members as of June 2023. The company offers employer, individual, and government-sponsored coverage plans. Elevance differs from its peers in its unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating as the licensee for the Blue Cross Blue Shield Association in 14 states. Through acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance's reach expands beyond those states through government-sponsored programs such as Medicaid and Medicare Advantage plans, too.
A Glimpse at Elevance Health Inc's Dividend History
Elevance Health Inc has maintained a consistent dividend payment record since 2011, with distributions occurring quarterly. The company has a reputation as a dividend achiever, having increased its dividend annually since 2011—a testament to its commitment to delivering shareholder value. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Elevance Health Inc's Dividend Yield and Growth
As of today, Elevance Health Inc currently has a 12-month trailing dividend yield of 1.17% and a 12-month forward dividend yield of 1.30%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Elevance Health Inc's annual dividend growth rate was 15.90%, which decreased slightly to 15.30% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at an impressive 13.40%.
Based on Elevance Health Inc's dividend yield and five-year growth rate, the 5-year yield on cost for Elevance Health Inc stock as of today is approximately 2.38%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Elevance Health Inc's dividend payout ratio is 0.21.
Elevance Health Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Elevance Health Inc's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Elevance Health Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Elevance Health Inc's revenue and earnings growth are particularly notable, with a 3-year revenue growth rate of 14.60% per year and a 3-year EPS growth rate of 22.40% per year, outperforming a significant portion of global competitors. Additionally, the company's 5-year EBITDA growth rate of 16.60% outperforms approximately 78.57% of global competitors, indicating strong future potential.
Next Steps
In conclusion, Elevance Health Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, and solid profitability and growth metrics paint a promising picture for current and potential investors. With a forward-looking approach and a strong position in the healthcare insurance market, Elevance Health Inc appears to be well-equipped to continue rewarding shareholders with sustainable dividends. As investors consider the future prospects of their portfolios, Elevance Health Inc's dividend profile may offer the stability and growth they seek.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
