Verisk is a leading data, analytics, and technology provider for property-casualty insurers... Show more
Verisk Analytics (VRSK), a leading provider of data analytics and risk assessment solutions primarily to the insurance industry, maintains a modest dividend profile characteristic of a growth-oriented company. The forward annual dividend is $2.00 per share, delivering a yield of 1.13% based on recent trading levels, with quarterly payments of $0.50 per share. This marks an 11% increase from the prior $0.45 quarterly payout announced in early 2026. While not a high-yield stock, Verisk positions itself as a dividend growth contender, prioritizing reinvestment in its high-margin analytics platforms alongside shareholder returns. The policy emphasizes steady progression rather than aggressive payouts, aligning with its focus on organic revenue expansion and acquisitions.
Verisk has demonstrated reliable dividend growth since initiating payouts, with quarterly distributions consistently delivered without interruption. The company raised its dividend five times over the past five years, including a notable 11% hike in Q1 2026 to $0.50 per share from $0.45. Over the past 12 months, dividend per share growth averaged 15.4%, with 13.2% over three years. Historical data from the investor relations site shows progression from lower bases, such as $0.31 in 2022, underscoring a strategy of compounding returns amid revenue growth in insurance and energy analytics. No cuts have occurred, reflecting disciplined capital allocation.
Verisk's dividend sustainability appears robust, underpinned by a low payout ratio of 27.8%, meaning less than 30% of earnings are distributed, leaving ample room for growth and reinvestment. Earnings per share (EPS) of approximately $6.50 comfortably covers the $2.00 annual dividend, with free cash flow (FCF) reaching $1.192 billion in 2025, up 29.5% year-over-year. Although net debt-to-equity is elevated at around 818%, operating cash flow covers debt obligations effectively at 30.5%, mitigating risks. Strong recurring revenue from subscription-based analytics further bolsters stability, positioning the dividend for continued support.
Verisk's 1.1% yield aligns with peers in the data analytics and professional services sector, where high-growth profiles limit payouts. For instance, Moody's Corporation (MCO) offers around 0.8%, S&P Global (SPGI) approximately 0.7%, and FactSet Research Systems (FDS) near 0.8%. Intercontinental Exchange (ICE) yields about 1.3%, slightly higher. Compared to the broader industrials sector average of 1.44%, Verisk's offering is modest but competitive given its faster earnings growth and lower payout ratio versus peers.
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Verisk Analytics may appeal to dividend growth investors prioritizing long-term compounding over immediate high income, given its modest 1.1% yield paired with double-digit recent increases and a sub-30% payout ratio. Those seeking stability in a defensive sector like insurance analytics will appreciate the consistent quarterly payments and strong FCF coverage, which support future hikes amid predictable subscription revenues. Conservative investors could find value in the low payout leaving buffer against economic cycles, though high debt warrants monitoring. High-yield seekers may look elsewhere, as Verisk emphasizes growth via R&D and M&As (mergers and acquisitions). Overall, it suits patient, quality-focused portfolios balancing capital appreciation with modest income in professional services.
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a provider of decision analytics and risk assessment services
Industry DataProcessingServices