Updated 4/11/25
Brown & Brown, Inc. (NYSE: BRO) is a nationwide insurance brokerage firm that has steadily grown into one of the top players in its industry. With a market cap over $32 billion, the company offers a blend of consistent earnings, disciplined capital allocation, and a multi-decade track record of dividend growth. It’s led by a seasoned executive team focused on organic expansion and strategic acquisitions, including recent moves into international markets. The stock has gained over 40% in the past year and continues to deliver solid cash flow, conservative payout ratios, and reliable financial performance—traits that have attracted investors looking for stability and long-term income potential.
Recent Events
BRO ended 2023 on a high note from a revenue standpoint, posting 15.2% growth over the prior year. That sort of growth doesn’t usually come from a slow-moving insurance business, but Brown & Brown has been smart about acquisitions and strategic growth opportunities. Still, the most recent quarterly earnings came in lighter than expected, showing a 21.9% decline year-over-year. Likely, some short-term headwinds—like integration costs or general cost pressures—played a role there.
But here’s the interesting part: the market didn’t flinch. The stock is up more than 43% over the past 12 months, far outpacing the broader indices. That kind of move signals confidence in the underlying business model and management’s ability to navigate bumps in the road. Trading at a price-to-earnings ratio in the low 30s (and around 27 times forward earnings), it’s not trading at a discount. But that hasn’t kept long-term investors—especially those who value predictable cash returns—from sticking around.
What stands out, especially for dividend investors, is how consistent this company has been. Through every kind of market cycle, BRO has kept doing what it does best: growing, generating cash, and quietly rewarding shareholders along the way.
Key Dividend Metrics
🪙 Forward Dividend Yield: 0.52%
📈 5-Year Dividend Growth Rate: Steady and reliable
📅 Dividend Increase Streak: 30 consecutive years
🔒 Payout Ratio: 15.61%, leaving plenty of room for more
📆 Last Dividend Date: February 12, 2025
🧮 Free Cash Flow Coverage: $859M in free cash flow far exceeds payout needs
📊 10-Year Dividend CAGR Estimate: Mid-to-high single digits
Dividend Overview
Let’s get one thing out of the way—the dividend yield isn’t going to make your jaw drop. At just over half a percent, it won’t replace your paycheck. But that doesn’t mean it should be ignored.
The strength of BRO’s dividend is in its consistency and reliability. They’ve increased their dividend for 30 years straight. That includes periods of recession, market shocks, and more recently, aggressive rate hikes. A company doesn’t build that kind of track record by accident. It comes from a disciplined mindset and strong financial footing.
And if you’re wondering about sustainability—look no further than the numbers. The current payout ratio is just 15.61%. That means the company is keeping over 84% of its profits to reinvest in the business, pay down debt, or return more cash to shareholders later on. That level of conservatism gives them enormous flexibility going forward.
Just as important, cash flows are incredibly healthy. Levered free cash flow came in at around $859 million—plenty of coverage for the modest $171 million they’re spending annually on dividends. Even with share buybacks or acquisition spending, there’s still plenty of cushion.
So yes, the yield may be small today. But what you’re buying into is a pattern of steady increases that can quietly build into something substantial over time. For dividend-focused investors, that’s a key part of the compounding story.
Dividend Growth and Safety
BRO’s dividend growth doesn’t get much media love, but it should. Over the past decade, they’ve steadily delivered increases in the high single-digit range, and there’s every reason to expect that trend to continue.
Why? It comes down to a few core strengths:
- The business generates a ton of cash and doesn’t need much of it to keep things running. That low capital intensity gives management options, and they’ve consistently chosen to share the wealth with shareholders.
- The balance sheet is solid. With over $685 million in cash and a reasonable debt-to-equity ratio of 63%, they’re not over-leveraged, and they’re in a good position to stay flexible.
- Their margins speak volumes. A 21% net profit margin and over 26% operating margin means they’re not just growing—they’re doing it efficiently.
- Lastly, management has shown they understand long-term value creation. They’re not chasing flashy deals or trying to manufacture growth with debt. They build brick by brick and reward shareholders consistently.
What’s often overlooked is the real impact of compounding. If you bought BRO a decade ago, your yield-on-cost would be far higher today thanks to those steady annual hikes. That’s how long-term wealth is built—not just from a big starting yield, but from dependable increases that turn a small dividend into meaningful income over time.
Cash Flow Statement
Brown & Brown’s trailing 12-month cash flow shows a healthy and growing core business. Operating cash flow reached $1.17 billion, continuing a clear multi-year upward trend from $808 million in 2021. Free cash flow followed a similar trajectory, now sitting at $1.09 billion, which reflects solid operational efficiency and a business model that consistently converts earnings into cash. Capital expenditures remain modest at just $82 million, further supporting the strength of the free cash flow number.
On the investing side, the company used $898 million, primarily reflecting acquisitions and other long-term investments. Financing activities were nearly flat at -$64 million, with $1.09 billion in new debt issued, closely offset by $1.07 billion in repayments. The company continues to manage its capital structure with discipline, maintaining a net increase in cash. The year ended with $2.5 billion in cash on hand—up from $1.47 billion in 2021—giving Brown & Brown plenty of flexibility for future growth or returns to shareholders.
Analyst Ratings
🟡 Brown & Brown (BRO) has seen a mix of analyst activity recently, reflecting varied perspectives on its valuation and growth prospects. 🔄 Morgan Stanley downgraded the stock from “Overweight” to “Equal-Weight” on March 25, 2025, while maintaining a price target of $128. This move suggests that the firm believes BRO’s current share price already captures its expected short-term growth, offering less upside from here.
📈 On the flip side, RBC Capital nudged its price target up from $118 to $120 earlier in the year, citing strong organic growth and a healthy pipeline of new business as driving factors. Not long after, Wells Fargo echoed that positive sentiment, raising its target from $115 to $125 and keeping an “Overweight” rating intact. These upgrades reflect continued confidence in the company’s consistent execution and solid fundamentals.
🎯 The current analyst consensus puts the average 12-month price target at approximately $116.31, with the range spanning from a more conservative $97.00 to an optimistic $130.00. This spread highlights differing views on BRO’s potential, though the average suggests a modest upside from recent levels—indicating cautious but ongoing support from the analyst community.
Earnings Report Summary
Strong Finish to the Year
Brown & Brown closed out 2024 with solid momentum. Revenue for the fourth quarter came in at $1.18 billion, up 15.4% from the same period last year. That kind of growth doesn’t happen by accident—it came from a healthy jump in commissions and fees, which totaled about $1.16 billion. Investment income also chipped in, climbing to $22 million, which gave earnings an added lift.
Earnings per share on an adjusted basis reached $0.86, which marked a 24.5% improvement year-over-year. That number beat what many were expecting and shows that the company is not only growing but doing so in a way that boosts profitability. When you look at how well they managed costs alongside rising revenue, it’s clear that operational efficiency is part of the story here.
Full-Year Highlights
Looking at the year as a whole, total revenue rose to $4.8 billion, up from $4.26 billion in 2023. Net income landed at $993 million for the year, compared to $871 million previously, and earnings per share came in at $3.46—another healthy jump from last year’s $3.05. These gains show how steady and deliberate growth can translate into meaningful shareholder value.
One thing that stood out in the fourth quarter was the pace of acquisitions. The company closed 10 deals during the quarter, adding roughly $137 million in annual revenue. Among them, the acquisition of Quintes in the Netherlands was a standout, signaling that Brown & Brown isn’t just growing within the U.S.—they’re building their presence internationally as well.
Overall, the company delivered a performance that reinforces what long-term investors have come to expect: consistent growth, smart execution, and an eye on both organic expansion and strategic acquisitions.
Chart Analysis
Steady Long-Term Climb for BRO
Looking at the one-year chart for BRO, the overall trend paints a picture of consistent upward momentum. After a steady base in the low 80s last spring, the stock began a climb that picked up speed in the second half of the year. There were brief pauses and pullbacks—particularly noticeable in late October and early December—but none of these dips broke the broader trend. Instead, they served as consolidation points before the next leg higher.
The 50-day moving average (shown in red) has remained above the 200-day (blue) for the majority of the chart, which reflects ongoing strength. That brief dip in the 50-day line around December shows some hesitation in the trend, but it regained upward momentum quickly. Most recently, the price bounced off the 50-day line and surged back toward recent highs—an encouraging sign for continued resilience.
Volume and RSI Insights
Volume has been mostly stable, with occasional spikes that tend to align with upward price moves. These bursts of activity suggest strong interest on rallies, with buyers stepping in at key moments. Importantly, there’s no pattern of heavy volume on down days, which indicates that sellers haven’t been in control during pullbacks.
The Relative Strength Index (RSI) tells an interesting story. The stock spent a good amount of time near or above the 70 level, which can sometimes suggest it’s getting overbought. However, BRO has handled these zones well, pulling back slightly before finding support and resuming its climb. It never stayed in overbought territory for too long, which often signals healthy buying rather than frothy speculation. The recent dip in RSI, followed by a bounce, shows the stock has reset a bit and may have more room to run.
Altogether, BRO’s chart reflects strength, structure, and a measured pace of growth. There’s a pattern here of brief corrections followed by renewed momentum, supported by steady volume and positive moving average trends. These signals suggest a stable longer-term setup, not one driven by hype or short-lived trends.
Management Team
Brown & Brown is led by President and CEO J. Powell Brown, who has been in the role since 2009. Over the years, he’s developed a reputation for long-term thinking and methodical execution. His leadership has played a key role in the company’s consistent organic growth, while also overseeing an active acquisition strategy that’s expanded the firm’s footprint both nationally and internationally.
Supporting him is Stephen P. Hearn, Executive Vice President and Chief Operating Officer, who brings deep industry experience to the table. He plays a crucial role in keeping the day-to-day operations aligned with the company’s broader strategy. R. Andrew Watts serves as Executive Vice President, CFO, and Treasurer, responsible for managing the firm’s financial strategy and ensuring a disciplined approach to capital allocation. Together, the leadership team combines strategic vision with operational focus, and their steady approach has been instrumental in shaping Brown & Brown into the reliable enterprise it is today.
Valuation and Stock Performance
As of early April 2025, Brown & Brown’s stock is trading around $116.64, a bit below its recent high of $125.68 set earlier this month. It’s had a strong run over the past year, gaining more than 40%, which reflects both its underlying business strength and the market’s growing confidence in its outlook.
The current valuation tells a story of optimism. With a trailing P/E of about 33.89 and a forward P/E closer to 27.62, investors are clearly paying a premium for consistency and expected earnings growth. That kind of multiple doesn’t typically go to companies with unpredictable results. It’s reserved for businesses that show up quarter after quarter, and that’s what Brown & Brown has done. The company’s market cap now sits over $32 billion, and analysts are projecting mid-to-high single-digit revenue and earnings growth over the next year. It’s not flashy growth, but it’s reliable—and in today’s market, that counts for a lot.
Risks and Considerations
While Brown & Brown has delivered on multiple fronts, it’s worth keeping a balanced view. The company’s exposure to property and casualty lines means it can be impacted by pricing cycles in the insurance industry. If rates soften, that could put some pressure on margins, especially in specialty lines.
Their decentralized model gives individual offices a lot of autonomy, which works well for scaling and responsiveness, but it also introduces risk if operational discipline isn’t consistently upheld across the organization. As the company continues to grow through acquisitions, integration will be something to watch. There’s also the broader macro environment to consider—economic slowdowns, shifts in business spending, and rate changes could all influence demand for insurance and related services. While BRO has shown it can navigate past challenges well, it’s still subject to the same cyclical pressures as the rest of the sector.
Final Thoughts
Brown & Brown stands out not because it makes headlines, but because it stays the course. Year after year, it posts steady results, quietly expands through smart acquisitions, and returns capital to shareholders without overreaching. It’s the kind of company that does well in the background, building value brick by brick.
The leadership is focused, the financials are solid, and the business model is repeatable. It won’t be immune to market cycles or industry shifts, but it’s shown a strong ability to adapt without losing its identity. For those who value consistency, measured growth, and financial discipline, Brown & Brown offers a model of how steady execution can create lasting results.