Humana (HUM) DIvidends Date & History

Key Takeaways

• Humana Inc. (HUM) offers a current dividend yield of 1.65%, paid quarterly at $0.885 per share.
• Annual dividend totals $3.54 per share, with the next ex-dividend date on June 26, 2026, and payment on July 31, 2026.
• Payout ratio stands at 36%, indicating strong coverage by earnings (TTM EPS $9.84).
• Five-year dividend growth rate of 7.2%, though flat in recent quarters since the 2023 increase to $0.885.
• Levered free cash flow (TTM) of $1.32 billion comfortably covers annual dividend payouts of approximately $430 million.
• Yield trails some health insurance peers like UNH (2.7%) but offers stability with low beta (0.44).

Dividend Overview

Humana Inc. (HUM), a leading health insurance provider, maintains a modest dividend profile suited for conservative income seekers. The company pays a quarterly dividend of $0.885 per share, equating to an annual payout of $3.54 and a current yield of 1.65% based on a share price around $216. This quarterly schedule has been consistent, with the most recent payment on April 24, 2026, following an ex-dividend date of March 27, 2026. While not a high-yield stock, HUM fits the dividend growth category historically, though recent payments have held steady since a hike in 2023. Investors appreciate the reliability amid healthcare sector volatility.

Dividend History and Growth

Humana has paid quarterly dividends consistently since the 1980s, with steady increases over time. The quarterly rate rose from $0.55 in 2019 to $0.625 in 2020, $0.70-$0.7875 in 2021-2022, and $0.885 starting in Q2 2023, where it has remained through 2026. This reflects a five-year compound annual growth rate (CAGR) of 7.2%. Earlier years show progressive hikes, such as from $0.28 in 2015 to $0.40 in 2017. No cuts have occurred in recent decades, underscoring a long-term strategy prioritizing shareholder returns alongside growth investments in Medicare Advantage and value-based care.

Dividend Sustainability and Payout Ratio

Humana's dividend appears highly sustainable, supported by a trailing payout ratio of 35.98%, leaving ample room for reinvestment or future raises. TTM earnings per share (EPS) of $9.84 provide robust coverage, with net income at $1.19 billion exceeding dividend obligations. Levered free cash flow (FCF) of $1.32 billion (TTM) and operating cash flow of $921 million further bolster payouts, covering the estimated $430 million annual dividend. Debt-to-equity ratio of 74.82% is manageable for an insurer, complemented by $19.9 billion in cash reserves and low beta (0.44) for reduced volatility. These metrics suggest resilience despite Medicare pressures.

Dividend Compared to Industry Peers

In the health insurance sector, Humana's 1.65% yield is competitive but lags some peers. UNH (UnitedHealth Group) offers 2.73%, ELV (Elevance Health) 2.15%, and CI (Cigna) 2.23%, reflecting higher payouts amid similar growth profiles. CNC (Centene) pays no dividend, focusing on expansion. Humana's lower yield aligns with its emphasis on earnings growth over aggressive distributions, positioning it as a balanced option versus higher-yielding rivals like CVS (3.47%). Sector averages hover above 2%, making HUM modestly attractive for yield-focused comparisons.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener excels at identifying dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to optimize your dividend strategy.

Is This Stock Attractive for Dividend Investors?

Humana Inc. (HUM) appeals to conservative dividend investors prioritizing stability over high yields. Its low payout ratio and strong cash flow coverage suit those seeking reliable quarterly income in the defensive healthcare sector. Long-term holders may value the 7.2% five-year growth trajectory and decades of consistency, even as recent flat payouts reflect prudent capital allocation amid regulatory and Medicare Advantage challenges. Income investors could find the 1.65% yield adequate paired with moderate appreciation potential, while growth-oriented dividend enthusiasts might await earnings recovery for hikes. However, those chasing top-tier yields may prefer peers like UNH. Overall, HUM fits balanced portfolios emphasizing sustainability over aggressive income.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations