Brown & Brown (BRO) DIvidends Date & History

Key Takeaways

• Brown & Brown, Inc. (BRO) offers a modest trailing dividend yield of 0.91%, with a forward yield of 0.93%.
• The company has increased its dividend for 31 consecutive years, qualifying it as a dividend aristocrat.
• Quarterly dividends currently stand at $0.165 per share, supported by a low payout ratio of 19.46%.
• Strong free cash flow of $1.38 billion (TTM) ensures robust coverage and sustainability.
• Dividend growth averages over 12% annually over the past five years.
• Lower yield than some peers but appeals to growth-oriented income investors.

Dividend Overview

Brown & Brown, Inc. (BRO), a leading insurance brokerage firm, maintains a conservative dividend policy characterized by steady growth rather than high yields. The current trailing annual dividend is $0.62 per share, delivering a yield of 0.91%, while the forward annual dividend rate is $0.63 for a 0.93% yield. Payments are made quarterly, with the most recent ex-dividend date on February 4, 2026, and payment on February 11, 2026. Over the past five years, the average yield has been 0.63%, reflecting the company's focus on reinvesting earnings into acquisitions and organic growth. BRO is best classified as a dividend growth stock, prioritizing consistent increases over a high immediate payout, making it attractive for long-term income investors seeking reliability in the insurance sector.

Dividend History and Growth

Brown & Brown has a proven track record of dividend reliability, with 31 consecutive years of increases as of early 2026. The company raised its quarterly dividend by 10% to $0.165 per share in October 2025, marking its 32nd consecutive annual adjustment. Historically, dividends have grown at an average rate of 12.2% over the past five years and 11.9% over the last three years. This growth aligns with the firm's expansion strategy, fueled by mergers and acquisitions (M&A, consolidations of companies) and organic revenue gains in property and casualty insurance brokerage. Payments have remained consistent quarterly since inception, with no cuts in over three decades, underscoring a long-term commitment to shareholder returns amid cyclical industry dynamics.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is rock-solid, bolstered by a payout ratio of just 19.46%, leaving ample room for growth and resilience during downturns. Earnings comfortably cover the dividend, with trailing P/E at 21.48. Free cash flow (FCF, cash generated after capital expenditures) reached $1.38 billion on a trailing twelve-month basis as of late 2025, up from $1.09 billion in 2024 and $0.94 billion in 2023, providing over 6x coverage for annual dividend obligations estimated at around $210 million. Debt-to-equity stands at 62.98%, manageable for the sector, while operating cash flow of $1.45 billion (TTM) further supports payout stability. These metrics position BRO's dividend as highly secure, even amid economic volatility.

Dividend Compared to Industry Peers

In the insurance brokerage industry, BRO's 0.91% yield trails peers like Arthur J. Gallagher & Co. (AJG) at 1.25%-1.30% and Hartford Financial Services Group (HIG) around 1.72%, but aligns closely with Aon plc (AON) and Willis Towers Watson (WTW) in the low single digits. BRO differentiates through superior dividend growth (12%+ annually) versus peers' more modest hikes, and its lower payout ratio enables faster increases. While not the highest yielder, its profile suits investors prioritizing growth over immediate income in a sector averaging 1.07% yields.

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Is This Stock Attractive for Dividend Investors?

Brown & Brown (BRO) appeals primarily to dividend growth investors who value consistent raises over high current yields. Its 31-year streak of increases, combined with double-digit historical growth and a sub-20% payout ratio, positions it well for compounding returns in a portfolio. Long-term, conservative investors may appreciate the stability from strong FCF generation and a scalable M&A-driven business model in the resilient insurance brokerage space. However, income-focused investors seeking yields above 3% might find it lacking, as the modest 0.91% payout prioritizes reinvestment. Balanced portfolios could benefit from BRO as a diversifier among higher-yield peers, offering lower volatility and growth potential. Suitability depends on individual time horizons and risk tolerance, with the stock's profile shining for patient holders amid sector consolidation.

Disclaimer

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