The Hanover Insurance GroupTHG +1.73%82 Dividend Payout Ratio is 0.18 as of Mar. 2026, which is 45% below its 10-year median of 0.33. GuruFocus rates THG with a GF Score™ of 82/100 and a GF Value™ of $201.18 (Fairly Valued). The stock has 7 warning signs investors should review. Among 335 Insurance companies, The Hanover Insurance Group ranks better than 80% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. The Hanover Insurance Group's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.18.
The historical rank and industry rank for The Hanover Insurance Group's Dividend Payout Ratio or its related term are showing as below:
THG'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.33 Max: 2.1
Current: 0.18
During the past 13 years, the highest Dividend Payout Ratio of The Hanover Insurance Group was 2.10. The lowest was 0.18. And the median was 0.33.
THG's Dividend Payout Ratio is ranked better than 80% of 335
companies
in the Insurance industry
Industry Median: 0.38
vs THG: 0.18
During the past 13 years, the highest Trailing Annual Dividend Yield of The Hanover Insurance Group was 3.04%. The lowest was 1.63%. And the median was 2.10%.
During the past 12 months, The Hanover Insurance Group's average Dividends Per Share Growth Rate was 5.70% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 6.10% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 6.60% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 8.00% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of The Hanover Insurance Group was 35.70% per year. The lowest was 6.10% per year. And the median was 9.50% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
The Hanover Insurance Group (NYSE:THG) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
The Hanover Insurance Group Dividend Payout Ratio Related Terms
The Hanover Insurance Group Dividend Payout Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hanover Insurance Group Dividend Payout Ratio Chart
THG vs KNSL, MCY, SIGI: Dividend Payout Ratio Comparison
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hanover Insurance Group Dividend Payout Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's Dividend Payout Ratio falls into.
The Hanover Insurance Group Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
The Hanover Insurance Group's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hanover Insurance Group (THG) has a Dividend Payout Ratio of 0.18 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on The Hanover Insurance Group and its competitors. This is 45% below median its historical median of 0.33. Over the past decade, The Hanover Insurance Group's Dividend Payout Ratio has ranged from 0.18 to 2.10. According to the industry distribution chart, The Hanover Insurance Group ranks #67 out of 335 companies in the Insurance industry, placing it in the top 20%.
Is The Hanover Insurance Group's Dividend Payout Ratio too high?
The Hanover Insurance Group's current Dividend Payout Ratio of 0.18 is 45% below median its 10-year median of 0.33. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 2.10. The Insurance industry median Dividend Payout Ratio is 0.38. The Hanover Insurance Group's value of 0.18 is 52.6% below this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #67 out of 335 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, The Hanover Insurance Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's Dividend Payout Ratio compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #67 out of 335 companies for Dividend Payout Ratio. This places The Hanover Insurance Group in the top 20% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.38. The Hanover Insurance Group's value of 0.18 is 52.6% below this benchmark. Historically, The Hanover Insurance Group's own Dividend Payout Ratio has ranged from 0.18 to 2.10 over the past decade. While the company's 10-year median is 0.33 vs. the industry median of 0.38, The Hanover Insurance Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Insurance company?
The median Dividend Payout Ratio among Insurance companies is 0.38, based on 335 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current Dividend Payout Ratio of 0.18 is 52.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median Dividend Payout Ratio is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current Dividend Payout Ratio is 0.18, which is 45% below median its own 10-year median of 0.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hanover Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, The Hanover Insurance Group (THG) is currently considered Fairly Valued. The stock's GF Value™ is $201.18, compared to a current price of $211.15 — trading 5% above its estimated fair value. The current Dividend Payout Ratio is 0.18, which is 45% below median its 10-year median of 0.33 and 52.6% below the Insurance industry median of 0.38. The Hanover Insurance Group's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current Dividend Payout Ratio is 0.18 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hanover Insurance Group (THG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hanover Insurance Group stock appears to be overvalued.
The current stock price of $211.15 is trading 5% above its estimated GF Value™ of $201.18.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
Dividend Payout Ratio: 0.18 (45% below median its 10-year median of 0.33)
GF Value™: $201.18 vs. price of $211.15 (5% above fair value)
Industry Position: 52.6% below the Insurance median (#67 of 335)
No single metric tells the full story. See the THG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business through Hanover Insurance, Citizens and other THG subsidiaries. The company conducts business operations through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. The company operates an investment portfolio that is exposed to fixed-income securities.
82GF Score
Get the complete analysis for THG
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