Elevance Health (ELV) DIvidends Date & History

Key Takeaways

• Elevance Health provides a forward dividend yield of 2.13%, solid for the health insurance industry.
• Quarterly dividend stands at $1.72 per share, with the most recent ex-dividend date on March 10, 2026, and payment on March 25, 2026.
• Dividend has grown at a 10-12% compound annual rate over the past five years, with at least 14 consecutive annual increases.
• Payout ratio of 27.1% reflects excellent coverage by earnings of $25.20 per share (TTM).
• Strong free cash flow (FCF), recently exceeding $6 billion annually, bolsters dividend sustainability.
• Positions ELV as attractive for growth-focused income investors in a stable sector.

Dividend Overview

Elevance Health, Inc. (ELV), a leading managed healthcare provider, maintains a quarterly dividend policy with a forward annual payout of $6.88 per share. This equates to a current yield of approximately 2.13% based on recent share prices around $323. The company recently increased its quarterly dividend to $1.72, payable on March 25, 2026, to shareholders of record before the March 10 ex-dividend date. ELV fits the profile of a dividend growth stock rather than a high-yield play, emphasizing consistent raises amid strong operational performance in health plans and services. This approach appeals to investors prioritizing reliability over outsized immediate income in the healthcare sector.

Dividend History and Growth

Elevance Health has demonstrated a robust dividend history, with payments consistently increasing over the past 15 years without cuts. The company has raised its dividend for at least 14 consecutive years, achieving a five-year compound annual growth rate (CAGR) of 12.7% and a three-year rate around 10.1%. Recent examples include the hike to $1.72 quarterly in early 2026 from prior levels, reflecting confidence in long-term earnings power. This steady progression underscores ELV's strategy of rewarding shareholders through reliable, growing distributions amid healthcare industry dynamics.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is fortified by a low payout ratio of 27.1%, meaning only about a quarter of trailing twelve-month earnings per share (EPS) of $25.20 is allocated to dividends. Free cash flow (FCF), a key metric for payout capacity, reached $6.765 billion in 2023 and remains ample at $3.4 billion levered TTM, providing ample coverage. Balanced debt levels and consistent profitability in core operations further support ongoing payments, positioning the dividend as secure even in fluctuating healthcare reimbursement environments.

Dividend Compared to Industry Peers

In the health insurance sector, ELV's 2.13% yield holds competitively. Peer UNH (UnitedHealth Group) offers a higher 2.7% yield, while CI (Cigna) yields about 2.3%. HUM (Humana) trails at 1.8%, and CNC (Centene) pays none, focusing on growth. Relative to the broader healthcare sector average of around 1.8-2%, ELV provides an above-average profile for income with growth potential.

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Is This Stock Attractive for Dividend Investors?

Elevance Health (ELV) suits dividend growth investors who value steady increases backed by strong fundamentals in a defensive sector like healthcare. Its 10%+ annual growth rate and low 27% payout ratio offer a balance of current income at 2.13% yield and future appreciation potential, appealing to those with moderate risk tolerance. Conservative investors may appreciate the consistency of 14+ years of raises and robust FCF coverage amid regulatory stability. However, yield seekers prioritizing ultra-high payouts might look elsewhere, as ELV emphasizes reinvestment for expansion over maximum distribution. Long-term holders benefit from sector resilience, though exposure to policy changes warrants diversification. Overall, it aligns well for portfolios blending income and moderate growth without excessive volatility.

Disclaimer

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