Updated 3/6/25

Assurant, Inc. (NYSE: AIZ) might not be the first name that comes to mind when you think of dividend stocks, but it has built a reputation for steady and reliable payouts. The company operates in the specialty insurance sector, focusing on lifestyle and housing solutions. This includes things like mobile device protection, extended service contracts for appliances and electronics, vehicle protection plans, and various financial services.

While it’s not a traditional insurance powerhouse, Assurant’s business model provides consistent cash flow, making it a stable choice for investors who appreciate dividend reliability over high yields. With a market cap of around $10.39 billion and strong fundamentals, it’s worth a closer look for those interested in dividend-paying stocks.

Let’s break down the key details to see if AIZ fits your income portfolio.

Key Dividend Metrics

💰 Dividend Yield – 1.56% (forward), 1.45% (trailing)
📈 5-Year Average Yield – 1.82%
💵 Forward Annual Dividend – $3.20 per share
📆 Ex-Dividend Date – February 3, 2025
📆 Next Dividend Payment Date – March 31, 2025
🔄 Payout Ratio – 20.47%
🚀 Dividend Growth – Consistent annual increases

Dividend Overview

Assurant isn’t a stock you buy for a massive yield, but it does offer something equally valuable—consistency. The company’s dividend yield currently sits at 1.56%, which is on the lower side compared to many income-focused stocks. But what it lacks in immediate high payouts, it makes up for in stability.

With a payout ratio of just over 20%, AIZ keeps plenty of earnings available for reinvestment. This low payout ratio not only protects the dividend during economic downturns but also leaves room for future increases. The company has a history of rewarding shareholders with steady dividend hikes, and given its strong cash flow, that trend is likely to continue.

Dividend Growth and Safety

One of the standout features of Assurant’s dividend policy is its long-term growth potential. The company has consistently raised its payout, all while maintaining a sustainable distribution model.

Why AIZ’s Dividend Stands Out

✅ The payout ratio is low, so there’s little risk of a cut
✅ The company generates strong free cash flow, supporting future increases
✅ Specialty insurance business provides steady revenue

Assurant’s operating cash flow is sitting at $1.33 billion, and its levered free cash flow comes in at $901 million. That’s plenty of cushion to keep paying dividends while also reinvesting in the business.

Because the company isn’t in a high-risk or cyclical industry, its cash flow remains stable, making its dividend one of the more reliable ones out there.

Chart Analysis

Assurant, Inc. (AIZ) has had a strong run over the past several months, but recent price action suggests the stock is in a consolidation phase. After peaking above $225, it has pulled back and is now trading around the $204 level. The 50-day moving average is currently flattening out after an upward trend, while the 200-day moving average continues to rise, signaling that the long-term bullish momentum is still intact.

Right now, the price is testing the 50-day moving average, which is acting as a short-term resistance level. If AIZ can reclaim this level and push higher, it could indicate renewed buying interest. However, if it struggles to hold above it, the stock may move lower, potentially testing support near the 200-day moving average.

Volume Trends

Volume patterns reveal some interesting dynamics. During the strong rally in December and early January, there was a noticeable increase in trading activity, suggesting that institutional investors were actively buying. More recently, volume has remained elevated but lacks the intensity seen during the earlier uptrend. This could indicate a balance between buyers and sellers, with neither side taking firm control just yet.

Relative Strength Index (RSI)

The RSI, shown at the bottom of the chart, reflects the stock’s momentum. During the peak in price, RSI was in overbought territory, suggesting that AIZ was due for a pullback. Since then, RSI has cooled off and is now in more neutral territory. If RSI moves lower toward oversold conditions, it could signal a stronger buying opportunity. On the other hand, if it remains in a middle range without a sharp rebound, the stock may continue trading sideways for a while.

Key Levels to Watch

AIZ remains in a long-term uptrend, but the recent price action suggests that short-term caution may be warranted. The next few trading sessions will be crucial in determining whether the stock can regain momentum or if the pullback will continue. Traders and investors will want to keep an eye on the 50-day moving average as a potential breakout point, while the 200-day moving average could serve as a safety net if further downside occurs.

Analyst Ratings

Assurant, Inc. (AIZ) has recently received mixed ratings from analysts, reflecting both optimism and caution about its future performance.

Upgrades 🟢

• Keefe, Bruyette & Woods upgraded Assurant from “Market Perform” to “Outperform” on February 20, 2025, raising the price target from $212 to $230. Analysts cited strong financial performance and strategic initiatives that could support long-term growth.
• Truist Financial maintained its “Buy” rating on February 13, 2025, increasing the price target from $240 to $250. The firm highlighted Assurant’s consistent earnings growth and effective cost management as key reasons for its confidence in the stock.

Downgrades 🔴

• Piper Sandler downgraded Assurant from “Overweight” to “Neutral” on August 22, 2024, lowering the price target to $200. The downgrade was driven by concerns that some of Assurant’s key business segments might be approaching market saturation, potentially limiting short-term revenue growth.
• Keefe, Bruyette & Woods previously downgraded the stock from “Outperform” to “Market Perform” on February 12, 2024, adjusting the price target from $170 to $182. Analysts pointed to increasing competition and uncertainty about market share expansion as reasons for their more cautious stance.

Consensus Price Target 📊

The latest consensus among analysts places the 12-month price target for Assurant at approximately $234.17, indicating potential upside from current levels. The mixed ratings reflect a balanced outlook, with some analysts focusing on the company’s strong fundamentals and others expressing caution about near-term challenges.

Earnings Report Summary

Assurant, Inc. (NYSE: AIZ) just released its latest earnings report, and the numbers show a solid performance across the board. The company wrapped up 2024 on a strong note, with both revenue and earnings growing compared to the previous year.

Fourth Quarter Highlights

In the final quarter of the year, Assurant pulled in $201.3 million in net income, a 10 percent jump from the same period in 2023. Adjusted EBITDA also saw an increase, hitting $381.4 million, up 6 percent year-over-year. Meanwhile, earnings per share (EPS) climbed to $3.87, marking a 13 percent improvement over last year’s fourth quarter.

Full-Year 2024 Performance

For the full year, Assurant delivered $760.2 million in net income, an 18 percent increase from 2023. Adjusted EBITDA came in at $1.32 billion, reflecting steady 5 percent growth. Full-year EPS reached $14.46, a significant 21 percent rise over the previous year.

How Each Business Segment Performed

• Global Lifestyle: This segment, which includes mobile device protection and extended service plans, brought in $191.7 million in adjusted EBITDA for the fourth quarter. That’s a slight 6 percent decline from last year, mainly due to investments in growth and higher claims in some areas. For the full year, adjusted EBITDA in this segment was $773.4 million, down 2 percent.
• Global Housing: This part of the business had a much stronger showing, with fourth-quarter adjusted EBITDA rising 21 percent to $225.4 million. Over the full year, the segment saw a 17 percent increase, reaching $671.2 million. The growth here was fueled by improved loss trends and higher premium rates.

Other Key Takeaways

• Revenue Growth: Assurant’s total revenue for the fourth quarter came in at $2.64 billion, reflecting 4 percent growth. For the full year, revenue totaled $10.5 billion, up 3 percent from 2023.
• Returns to Shareholders: The company returned $456 million to shareholders through dividends and stock buybacks in 2024, showing its commitment to rewarding investors.

Looking Ahead to 2025

Assurant expects steady growth in the coming year, with modest increases in earnings and EBITDA. The company plans to double down on expanding partnerships, launching new products, and improving customer experience. With a strong foundation and a clear strategy, Assurant is positioning itself for another solid year ahead.

Overall, 2024 was a year of steady growth, particularly in the housing segment, and Assurant’s focus on financial discipline and innovation should keep it on track for continued success.

Financial Health and Stability

Balance Sheet Strength

Assurant’s financial position is solid, balancing strong cash reserves with manageable debt.

• Total Cash: $2.09 billion
• Total Debt: $2.15 billion
• Debt-to-Equity Ratio: 42.01%
• Book Value Per Share: $100.46

One thing to keep an eye on is the current ratio, which is at 0.44. This suggests that in the short term, liquidity might be a little tight. However, the company’s strong cash flow generation offsets any immediate concerns.

Profitability and Growth

• Net Profit Margin: 6.40%
• Operating Margin: 9.08%
• Quarterly Revenue Growth (YoY): 4.1%
• Quarterly Earnings Growth (YoY): 10.3%

A steady increase in revenue and earnings shows that Assurant is not just maintaining its business but growing it. For dividend investors, this is an important factor because long-term dividend stability often depends on consistent earnings growth.

Valuation and Stock Performance

Despite a solid run in 2024, AIZ remains reasonably valued based on key financial metrics.

• Trailing P/E Ratio: 14.15
• Forward P/E Ratio: 12.29
• Price/Book Ratio: 2.03

The company has traded in a range between $160.12 and $230.55 over the past year, with its current price hovering around $203.32. The stock’s 200-day moving average of $194.21 suggests that it’s on an upward trend but still trading at a fair value relative to earnings.

Compared to the broader market, Assurant has slightly outpaced the S&P 500’s 52-week return of 13.29%, posting a gain of 14.35%. This steady performance aligns with the company’s reputation as a dependable stock rather than a high-flying growth play.

Risks and Considerations

While Assurant is a strong dividend payer, no stock is without risks.

1️⃣ The yield is lower than many income-focused stocks, which may not appeal to those needing immediate high returns.
2️⃣ The company carries some debt, with a debt-to-equity ratio of 42.01%. It’s manageable, but always worth watching.
3️⃣ The business is somewhat tied to consumer spending, so an economic slowdown could have an impact.
4️⃣ Short-term liquidity looks tight, given the current ratio of 0.44, though strong cash generation reduces immediate concerns.

None of these risks are deal-breakers, but they’re worth considering if you’re planning to hold AIZ for the long term.

Final Thoughts

Assurant may not be a high-yield dividend stock, but it’s a well-managed company with a track record of steady payouts and financial strength. The low payout ratio and strong cash flow give it plenty of flexibility for future increases, making it an appealing choice for investors looking for dividend reliability over yield.

For those who prioritize stability, steady growth, and a financially sound company, AIZ fits the bill. It’s not flashy, but sometimes slow and steady wins the race in dividend investing.