Key Takeaways
📈 Elevance offers a forward dividend yield of 1.63% with consistent annual growth, supported by a conservative 25.68% payout ratio.
💵 Free cash flow remains strong at $3.67 billion over the trailing twelve months, easily covering dividends and share repurchases.
📊 Analyst sentiment is cautiously optimistic, with a consensus price target near $510 and recent upgrades citing operational strength.
🧾 Q1 2025 earnings showed 15% revenue growth, adjusted EPS of $11.97, and CEO comments highlighting progress in digital care and member engagement.
Last Update: 5/1/25
Elevance Health, formerly Anthem, stands as one of the leading U.S. health insurers with a growing presence across Medicare, Medicaid, and commercial markets. With over 45 million medical members and $48.8 billion in recent quarterly revenue, the company is expanding its footprint through Carelon’s healthcare services and digital care investments. The leadership team, led by CEO Gail Boudreaux, continues to focus on streamlining care, enhancing patient outcomes, and balancing innovation with operational discipline..
Recent Events
The first quarter of 2025 painted a nuanced picture. Revenue surged nearly 15% compared to a year ago, a sign that Elevance’s business model continues to capture growth. Yet, at the same time, earnings per share edged down by nearly 3%. That kind of divergence can raise eyebrows. Why is the top line growing while the bottom line compresses? In this case, it’s likely a combination of rising costs and some one-off expenses tied to expansion and operational shifts.
Even so, the market didn’t panic. Shares are holding their ground, trading just above $420 as of the end of April. That’s still well below the 52-week high of $567, but also comfortably off the lows around $362. Notably, volatility remains subdued. With a five-year beta under 0.8, Elevance tends to move more calmly than the broader market, a quality that dividend investors often appreciate.
The company also holds a healthy cash balance—more than $33 billion—which gives it ample flexibility. That’s especially reassuring when paired against its $30 billion in debt. In other words, the balance sheet isn’t a concern. Add to that nearly 94% institutional ownership and a low short interest, and it’s clear that professional investors still view Elevance as a solid, long-term player.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.63%
💵 Annual Dividend Rate: $6.84 per share
📆 Ex-Dividend Date: June 10, 2025
📊 Payout Ratio: 25.68%
📉 5-Year Average Yield: 1.18%
🔁 Dividend Growth Streak: 12 years (unofficial)
🛡 Dividend Safety Score (Implied): Strong—ample cash flow coverage
🚀 EPS Growth Support: Moderate, despite recent earnings slip
Dividend Overview
Elevance doesn’t try to dazzle with a high dividend yield, but it delivers something many high-yield names don’t—consistency and security. At 1.63%, the yield is above the company’s five-year average, and that’s a notable improvement for a stock that used to offer far less income to shareholders.
The company most recently bumped up its annual payout to $6.84 per share, up from $6.60. That’s a modest increase—about 3.6%—but it came even as quarterly earnings took a slight dip. That kind of move signals confidence from the management team. They’re not stretching to impress. They’re simply rewarding shareholders in line with sustainable performance.
One of the more compelling aspects is the way Elevance handles its cash. The payout ratio remains just under 26%, which is low by most standards. That leaves room for reinvestment, debt reduction, and—perhaps most importantly for income investors—future dividend hikes.
The company isn’t leaning on financial engineering to keep investors happy either. There’s no meaningful dilution happening, and the share count is well-controlled. Unlike some names that need aggressive buybacks just to prop up earnings, Elevance is keeping it simple—grow the business, generate cash, and return a portion to shareholders.
Dividend Growth and Safety
If you’re a long-term dividend investor, two questions likely matter most: how likely is the dividend to grow, and how safe is it? On both fronts, Elevance checks out well.
First, the safety side. The current payout is well-covered by earnings and even more so by free cash flow. Operating cash flow over the trailing twelve months sits around $4.85 billion, while levered free cash flow is even higher at $7.44 billion. That kind of breathing room makes it easy to keep paying—and growing—the dividend, even during tougher quarters like the one just reported.
As for the company’s capital structure, there’s little reason for concern. Total debt is manageable, and with over $148 in cash per share, Elevance has plenty of liquidity on hand. The debt-to-equity ratio, while over 70%, isn’t problematic in the context of consistent cash flows and stable operations. They’re not overleveraged; they’re balanced.
On the growth front, the dividend has risen steadily over the past decade. While the most recent hike was smaller than some previous years, it continues a long-standing pattern. The increases tend to come once per year, and while management hasn’t explicitly committed to a dividend growth policy, their actions speak volumes.
Looking forward, there are tailwinds to support ongoing growth. Healthcare demand continues to rise, particularly in Medicare and Medicaid segments, where Elevance holds significant market share. The push into value-based care also has the potential to improve margins and drive higher per-member profitability. Over time, that should translate into greater cash generation—and more room to lift the dividend.
Compared to peers in the managed care and broader healthcare sectors, Elevance’s dividend sits in a comfortable middle ground. It’s not the highest-yielding name out there, but it offers a better combination of yield, growth, and safety than most. And in a market where reliability often feels scarce, that combination holds real value.
Cash Flow Statement
Over the trailing twelve months, Elevance Health generated $4.85 billion in operating cash flow, a noticeable decline from previous years when figures consistently surpassed the $8 billion mark. This softening reflects a cooling in core earnings momentum, but it’s not alarming when viewed in context. Free cash flow came in at $3.67 billion, still strong enough to support dividends and capital allocation plans without stretching the balance sheet.
Investing activity remained cash-intensive, with a $2.75 billion outflow primarily tied to acquisitions and technology investments. On the financing side, debt issuance totaled $7.18 billion, more than offsetting repayments, yet capital returned to shareholders—via buybacks and dividends—kept financing cash flow in negative territory. The end cash position sits at $7.57 billion, slightly below last year but solid. This financial structure leaves Elevance in a healthy position to continue funding growth and rewarding shareholders.
Analyst Ratings
📉 Elevance Health (ELV) has recently experienced a mix of analyst updates, reflecting both optimism for its long-term trajectory and caution surrounding current pressures. The average 12-month price target now sits around $510, which leaves room for upside from its current trading range near $420.
🔄 In April 2025, Baird shifted its stance on ELV from Outperform to Neutral, trimming its price target from $625 to $529. This move came on the heels of concerns tied to rising medical costs in the Medicare Advantage space and the potential ripple effects from ongoing regulatory changes. These issues have weighed on sentiment despite the company’s broader strength.
📈 On a more upbeat note, Barclays nudged its target higher, moving from $512 to $522. They cited ELV’s balanced revenue mix and disciplined execution as reasons to maintain a constructive view. Guggenheim also reaffirmed a Buy rating and set a target at $518, highlighting the company’s solid positioning in both Medicaid and commercial employer plans.
🛠 Analysts seem to appreciate the way Elevance is tackling headwinds—through focused investments in care coordination, digital platforms, and cost containment strategies. While caution is present due to margin pressure, the overall tone leans supportive, with the stock viewed as a quality name navigating a complex landscape.
Earning Report Summary
Revenue and Membership Growth
Elevance Health kicked off 2025 with solid momentum. In its most recent quarterly report, the company delivered $48.8 billion in operating revenue, up more than 15% compared to the same period last year. That jump wasn’t a fluke—it came from a mix of higher premiums, organic growth, and the lift from a few acquisitions. Membership gains in Medicare Advantage and ACA plans played a big role, especially as more individuals opted into plans through public exchanges.
Their Health Benefits division pulled in $41.4 billion, showing growth across both government-backed and commercial plans. On the services side, Carelon continues to gain traction. Revenues there climbed to $16.7 billion—an impressive 38% jump. That was largely thanks to recent additions and stronger performance from CarelonRx, the pharmacy benefits unit.
Profitability and Spending
Earnings came in above expectations, with adjusted EPS landing at $11.97 for the quarter. The medical loss ratio—a key measure of how much they’re spending on healthcare services for members—held steady at 86.4%, right where the market was expecting. They also noted that operating cash flow for the quarter reached $1 billion, although that figure was affected by some timing quirks in payments and collections.
Shareholders saw continued returns through both dividends and buybacks. Elevance bought back 2.2 million shares during the quarter, spending $880 million to do so. They also paid out a dividend of $1.71 per share, keeping with their ongoing capital return strategy.
Comments from Leadership
CEO Gail Boudreaux spoke confidently about where the company is headed. She emphasized that Elevance is making meaningful strides in transforming the healthcare experience, pointing to more personalized support services and expanded digital tools that help members manage care more effectively. The long-term vision, she noted, is about simplifying healthcare without sacrificing outcomes—and that mission seems to be showing up in both the numbers and their member engagement.
Looking ahead, Elevance stuck with its full-year earnings guidance, aiming for adjusted EPS between $34.15 and $34.85. That signals a steady hand from leadership and suggests they feel good about navigating any near-term challenges, whether they’re tied to regulation, costs, or competition.
Earning Report Summary
Revenue and Membership Growth
Elevance Health kicked off 2025 with solid momentum. In its most recent quarterly report, the company delivered $48.8 billion in operating revenue, up more than 15% compared to the same period last year. That jump wasn’t a fluke—it came from a mix of higher premiums, organic growth, and the lift from a few acquisitions. Membership gains in Medicare Advantage and ACA plans played a big role, especially as more individuals opted into plans through public exchanges.
Their Health Benefits division pulled in $41.4 billion, showing growth across both government-backed and commercial plans. On the services side, Carelon continues to gain traction. Revenues there climbed to $16.7 billion—an impressive 38% jump. That was largely thanks to recent additions and stronger performance from CarelonRx, the pharmacy benefits unit.
Profitability and Spending
Earnings came in above expectations, with adjusted EPS landing at $11.97 for the quarter. The medical loss ratio—a key measure of how much they’re spending on healthcare services for members—held steady at 86.4%, right where the market was expecting. They also noted that operating cash flow for the quarter reached $1 billion, although that figure was affected by some timing quirks in payments and collections.
Shareholders saw continued returns through both dividends and buybacks. Elevance bought back 2.2 million shares during the quarter, spending $880 million to do so. They also paid out a dividend of $1.71 per share, keeping with their ongoing capital return strategy.
Comments from Leadership
CEO Gail Boudreaux spoke confidently about where the company is headed. She emphasized that Elevance is making meaningful strides in transforming the healthcare experience, pointing to more personalized support services and expanded digital tools that help members manage care more effectively. The long-term vision, she noted, is about simplifying healthcare without sacrificing outcomes—and that mission seems to be showing up in both the numbers and their member engagement.
Looking ahead, Elevance stuck with its full-year earnings guidance, aiming for adjusted EPS between $34.15 and $34.85. That signals a steady hand from leadership and suggests they feel good about navigating any near-term challenges, whether they’re tied to regulation, costs, or competition.
Chart Analysis
Price Trends and Moving Averages
Looking at the past year, ELV has been through a classic cycle of pressure, recovery, and stabilization. The share price peaked near $550 early in the chart and began trending downward in a clear and prolonged decline through the final months of last year. This is visually backed up by the 50-day moving average, which rolled over sharply and remained below the 200-day for a good stretch—an extended bearish phase.
As the calendar flipped into the new year, that downtrend finally began to flatten out. The price found support in the $375–$390 range, forming what now looks like a rounded bottom. Since then, the 50-day average has started curling up, showing early signs of a trend reversal. However, it remains just under the 200-day average, which means the longer-term momentum hasn’t fully flipped yet. The stock has tested that resistance band near $440 several times but hasn’t broken through decisively.
Volume and Market Behavior
Volume levels were relatively muted during the early part of the decline but picked up sharply around key turning points, especially when the stock bounced from its lows. That spike suggests some institutional repositioning or accumulation as the valuation reached more attractive levels. More recently, volume has cooled again, which is typical during periods of consolidation.
There’s no sign of a speculative blow-off or panic—just a steady return of interest. That speaks to a more controlled shift in sentiment, possibly indicating that the worst of the selling pressure is behind.
RSI and Momentum
The relative strength index stayed below the midpoint during most of the decline, consistent with selling momentum. But starting in January, RSI climbed above 50 and hovered in a healthier zone until just recently, when it began to dip again. It hasn’t dropped into oversold territory, but it does reflect a loss of steam after the rebound. The RSI action is supportive of a consolidating phase rather than another sharp drop.
Taken together, the chart is telling a story of a stock that went through a reset, found a base, and is now working to rebuild its uptrend. It hasn’t broken out, but it’s no longer breaking down. Patience remains important, but this kind of technical recovery often sets the stage for more sustainable upward movement over time.
Management Team
Elevance Health is led by CEO Gail Boudreaux, who has guided the company since 2017. Her leadership has been marked by a clear strategy focused on integrating care delivery with insurance services, investing in digital infrastructure, and improving health outcomes. She brings a pragmatic, long-term approach to managing the complexities of a rapidly evolving healthcare landscape.
The broader leadership team brings deep industry experience and operational discipline. Mark Kaye serves as Chief Financial Officer, overseeing capital allocation and financial operations with a focus on sustainable growth. Blair Todt, the Chief Legal Officer, plays a key role in navigating regulatory environments and ensuring compliance. The team’s collective focus on execution has helped Elevance grow steadily while adapting to industry changes.
Valuation and Stock Performance
At the close of April 30, 2025, Elevance shares were trading at $420.58, marking a daily gain of 1.68 percent. Despite recent strength, the stock still sits well below its 52-week high of $567.26. From a valuation standpoint, the current P/E ratio is around 16.3, which puts it below the company’s long-term average and below many of its peers in the managed care sector.
The forward P/E ratio of 12.2 also suggests that the market is pricing in conservative earnings expectations, possibly giving value-oriented investors a more attractive entry point. Analyst price targets average around $519, which represents meaningful potential upside if the company continues to deliver on its earnings goals and margins begin to improve.
The stock’s recent underperformance appears tied more to macro pressures in healthcare and concerns over Medicare Advantage margins than company-specific weaknesses. With solid fundamentals and improving operational momentum, Elevance may be quietly setting the stage for a comeback.
Risks and Considerations
There are risks investors need to weigh. One of the more immediate concerns involves a federal lawsuit filed against Carelon Behavioral Health, a subsidiary of Elevance. The suit alleges that the company misrepresented its mental health provider network, potentially delaying access to care and increasing out-of-pocket costs for patients. While the legal outcome is uncertain, it introduces both reputational and financial risk.
Outside of litigation, Elevance operates in a highly regulated environment. Any shifts in government policy, especially those impacting Medicare and Medicaid, could disrupt revenue streams. Reimbursement rates, regulatory audits, and contract adjustments are part of the ongoing reality for companies in this space.
There’s also pressure on cost containment. With rising medical costs and evolving care delivery models, Elevance must continue improving efficiency and outcomes. If inflation or policy shifts drive costs higher without corresponding rate adjustments, that could squeeze margins and dampen earnings growth.
Final Thoughts
Elevance Health continues to evolve into a more integrated healthcare platform under a stable and experienced management team. The focus on digitization, personalized care, and service diversification appears to be positioning the company well for long-term relevance. While the stock has underperformed over the past year, valuation metrics suggest there may be room for upside, especially as operating trends normalize.
That said, investors should remain aware of the risks. Legal overhangs, policy volatility, and ongoing cost pressures could create headwinds. But for those who prioritize steady execution and a focus on long-term healthcare innovation, Elevance presents a balanced blend of income and growth potential in a sector that remains essential.