Humana (HUM) DIvidends Date & History

Key Takeaways

• Current dividend yield stands at approximately 0.89% with an annual payout of $3.54 per share.
• Dividends are paid quarterly at $0.885 per share, reflecting a consistent payment schedule.
• Payout ratio remains low at around 38%, supporting strong dividend sustainability.
• Five-year dividend growth rate averages about 6.6%, indicating moderate but steady increases.
• Free cash flow and earnings provide ample coverage for ongoing dividend distributions.
• The stock appeals primarily to long-term investors seeking balanced income and growth.

Dividend Overview

Humana Inc. (HUM) maintains a quarterly dividend policy with payments of $0.885 per share. The current annual dividend totals $3.54, resulting in a forward yield near 0.89%. As a major health insurance provider, the company positions its dividend as a modest but reliable component of shareholder returns rather than a high-yield focus. This profile classifies HUM as a dividend growth stock with conservative income characteristics, suitable for investors prioritizing stability over immediate high returns.

Dividend History and Growth

Humana has delivered consistent quarterly dividends with periodic increases over the years. The five-year annualized dividend growth rate reaches approximately 6.6%, reflecting disciplined capital allocation amid industry challenges. Payments have remained uninterrupted, with recent declarations maintaining the $0.885 quarterly level. The company’s long-term strategy emphasizes sustainable growth tied to earnings expansion, avoiding aggressive hikes that could strain resources.

Dividend Sustainability and Payout Ratio

With a payout ratio of roughly 38%, Humana’s dividend appears well-covered by earnings. Earnings per share around $9.39 provide substantial headroom, while free cash flow further bolsters coverage. Debt levels remain manageable within the healthcare sector, supporting ongoing distributions without excessive leverage. Overall financial stability, driven by diversified insurance operations, reinforces the dividend’s resilience even during periods of regulatory or market volatility.

Dividend Compared to Industry Peers

Within the managed care and health insurance sector, Humana’s yield of about 0.89% sits below the industry median near 2.05%. Peers often offer higher yields, yet HUM’s lower payout ratio and growth trajectory provide a more conservative profile. This positions the company as offering below-average current income but potentially stronger long-term compounding for dividend-focused investors.

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Is This Stock Attractive for Dividend Investors?

Humana Inc. (HUM) may suit long-term dividend growth investors who value consistency and sustainability over high immediate yields. Its low payout ratio and moderate growth history appeal to conservative portfolios seeking healthcare sector exposure with reliable quarterly income. Income-focused investors might find the yield modest compared to higher-yielding alternatives, while those prioritizing capital preservation could appreciate the earnings coverage and financial stability. The stock fits balanced strategies combining modest income with potential for future dividend increases, though suitability depends on individual risk tolerance and portfolio goals. No investment recommendation is implied.

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