Exploring the Dividend Sustainability and Growth Prospects of Elevance Health Inc (ELV, Financial)
Elevance Health Inc (ELV) has recently declared a dividend of $1.63 per share, payable on June 25, 2024, with the ex-dividend date set for June 10, 2024. As investors anticipate this forthcoming payment, it's an opportune moment to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will explore the sustainability and growth prospects of Elevance Health Inc's dividends.
Company Overview
Elevance Health remains a leading entity in the U.S. health insurance sector, serving 47 million medical members as of December 2023. The company provides a variety of coverage plans including employer, individual, and government-sponsored programs. Unique in its scale, Elevance Health is the largest single provider of Blue Cross Blue Shield branded coverage, holding licenses in 14 states. Strategic acquisitions such as Amerigroup in 2012 and MMM in 2021 have further broadened its reach, particularly in Medicaid and Medicare Advantage plans.
A Look at Elevance Health Inc's Dividend History
Since 2011, Elevance Health Inc has upheld a consistent record of dividend payments, distributed quarterly. Recognized as a dividend achiever, the company has raised its dividend annually since 2011, showcasing its commitment to returning value to shareholders.
Below is a graphical representation of the annual Dividends Per Share, illustrating historical trends.
Dividend Yield and Growth Analysis
Currently, Elevance Health Inc boasts a trailing dividend yield of 1.13% and a forward dividend yield of 1.21%, indicating anticipated increases in dividend payments over the next year. Over the last three years, the annual dividend growth rate was 15.90%, slightly tapering to 15.30% over a five-year period, and maintaining a robust annual growth rate of 13.40% over the past decade.
Based on these figures, the 5-year yield on cost for Elevance Health Inc stock is approximately 2.28% today.
Examining Dividend Sustainability
The sustainability of dividends is crucial for long-term investment considerations. Elevance Health Inc's dividend payout ratio, which stands at 0.20 as of March 31, 2024, suggests that the company retains a substantial portion of its earnings for future growth and stability. The company's profitability rank is 8 out of 10, reflecting strong earnings capabilities relative to its peers. Consistent positive net income over the past decade further supports this high profitability.
Future Growth Prospects
Elevance Health Inc's growth metrics are equally promising. With a growth rank of 8 out of 10, the company shows favorable growth dynamics compared to its competitors. Its revenue per share and 3-year revenue growth rate of 14.60% per year outperform approximately 60% of global competitors. Additionally, a 3-year EPS growth rate of 22.40% and a 5-year EBITDA growth rate of 16.60% further underscore its capacity for sustained dividend payments and financial health.
Conclusion
Elevance Health Inc's robust dividend growth, prudent payout ratios, and strong profitability and growth metrics paint a promising picture for current and potential investors. These factors not only underscore the company's ability to sustain and potentially increase its dividend payments but also highlight its overall financial health and strategic market position. For those looking to explore further, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover high-yield investment opportunities.
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.
