Key Takeaways
💰 EQH offers a 1.90% forward dividend yield with a low 25.88% payout ratio, leaving room for future dividend growth backed by steady capital returns.
💵 Operating cash flow for the trailing twelve months reached $2.13 billion, with $2.03 billion in free cash flow, supporting both dividends and share repurchases.
📊 Analysts have a favorable view, with multiple recent upgrades and a consensus price target of $62.90, reflecting confidence in the company’s earnings outlook and capital strategy.
📈 First-quarter earnings showed solid fundamentals with strong inflows and continued capital discipline, despite slightly lower year-over-year adjusted earnings per share.
Last Update 5/4/25
Equitable Holdings (EQH) has steadily built a reputation for disciplined execution, strong capital returns, and consistent earnings growth. With over \$1 trillion in assets under management and a focused leadership team, the company continues to deliver shareholder value through dividends, buybacks, and strategic investments. Its recent quarterly results showed resilience, backed by healthy inflows across retirement, wealth, and asset management segments.
The stock has climbed nearly 29% over the past year, yet it still trades at a conservative forward P/E, offering room for further upside. Supported by robust free cash flow, a solid balance sheet, and thoughtful risk management, EQH is positioned to maintain its upward trajectory.
Recent Events
The latest quarter painted a picture of a company that’s on firm footing but not without a few wrinkles. Equitable’s revenue over the trailing twelve months came in at $15.1 billion. That’s more than double what it was a year ago—an impressive 105% increase. That kind of jump suggests strong business momentum, but it’s likely some of the lift came from accounting changes or one-off events. Meanwhile, earnings weren’t quite as upbeat, with net income sitting at $1.2 billion and quarterly earnings growth falling over 30%.
That said, operational cash flow hit a healthy $2.13 billion, and after accounting for expenses and reinvestment, the company still walked away with $875 million in free cash flow. That’s money that can go right back into buybacks, dividends, or simply padding the balance sheet.
The market seems to have taken notice. EQH shares have climbed nearly 29% over the past year, closing at $50.46 recently. The stock has been hovering near its highs and comfortably above both its 50-day and 200-day moving averages.
Some key performance signals from the quarter:
- Return on equity stands at a striking 38.5%, showing just how efficiently the company is putting capital to work.
- Debt is high, with a debt-to-equity ratio around 146%, but it’s offset by a hefty cash balance.
- The company continues to be aggressive about returning capital to shareholders, balancing dividends and stock buybacks.
Key Dividend Metrics
🧾 Forward Dividend Yield: 1.90%
💵 Annual Dividend Payout: $0.96 per share
📈 Five-Year Average Yield: 2.49%
🎯 Payout Ratio: 25.88%
📅 Most Recent Dividend Date: March 12, 2025
🔜 Ex-Dividend Date: March 5, 2025
This mix of stats tells a straightforward story. The dividend is modest, but it’s comfortably funded. And there’s room to grow it.
Dividend Overview
EQH hasn’t been on the market for decades, but since its IPO, it’s built a solid track record for dividend stability. At $0.96 per share annually, the current payout is steady and reflects management’s cautious but clear intent to reward shareholders.
The dividend yield, sitting around 1.90%, won’t set records, but that’s not necessarily a problem. The lower yield is partly a function of a rising stock price. That upward move reflects confidence in the business rather than a lack of generosity from management.
One thing worth noting is that EQH’s payout ratio is just under 26%. That’s conservative by financial sector standards. It signals that the dividend is not just affordable, but built on a base of real cash earnings rather than aggressive forecasting.
Another quiet signal comes from ownership data. Institutional holders own more than 100% of the float, a sign that big players are confident in EQH’s long-term value. Insiders, on the other hand, hold a very small slice—just over half a percent—which isn’t uncommon for firms of this size and structure.
Dividend Growth and Safety
When it comes to growth potential, EQH has the space to expand its dividend. Even though the company’s payout hasn’t jumped significantly in recent years, its conservative ratio leaves the door wide open for increases. Especially as free cash flow grows and debt remains manageable, there’s plenty of room to reward shareholders further.
The stock’s five-year average yield of 2.49% is a reminder that the current yield has room to stretch back upward, assuming a hike comes through or the price consolidates.
Dividend safety looks solid here. Free cash flow remains robust. With $9.5 billion in cash and strong operating results, EQH has plenty of protection built in. This is especially important in a rising rate environment where companies loaded with floating-rate debt could find themselves squeezed.
The company’s balance sheet does carry a decent amount of debt, but its interest obligations are well-covered. The 1.9 current ratio shows that liquidity isn’t a pressing concern.
Altogether, EQH offers an income profile that’s stable, sustainable, and backed by a business model built around predictable earnings. It’s not offering sky-high income today, but what it provides is quality: the kind of dividend you can quietly collect while the company keeps executing behind the scenes.
Cash Flow Statement
Equitable Holdings has made a sharp turnaround in its cash generation over the past couple of years. For the trailing twelve months, operating cash flow sits at $2.13 billion, a steady climb from $2.0 billion the prior year and a marked improvement from several years of negative operating cash flow. This rebound signals operational consistency and discipline, suggesting that the company is extracting more efficiency from its core businesses. Free cash flow is also back in strong territory, coming in at $2.03 billion, comfortably covering dividends and supporting other capital return efforts.
On the investing side, EQH continues to show heavy outflows, with $14.37 billion in cash used, consistent with past years. These numbers reflect ongoing portfolio activity and internal investment rather than signs of stress. Financing activity helped bridge the gap, generating $9.72 billion, driven by debt issuance and steady repurchase programs. Notably, the company continues to retire debt while actively buying back stock, all while growing its cash position to $7.84 billion. Despite significant capital movements, EQH’s cash flow statement shows a company in financial control, reinvesting while maintaining liquidity and delivering on shareholder commitments.
Analyst Ratings
Equitable Holdings has been on the radar of several analysts lately, prompting a wave of upgraded ratings and raised price targets. 🟢 UBS shifted its rating from “Neutral” to “Buy”, pointing to the company’s momentum in its registered index-linked annuity business and improved efficiency across its operations. This upgrade aligned with a visible uptick in the share price, signaling that institutional sentiment is warming to EQH’s execution and future outlook.
Wells Fargo also came through with a price target bump, raising it from $59 to $61 while sticking to its “Overweight” rating. 📈 Their view reflects continued strength in Equitable’s core financial and insurance services, along with confidence in management’s handling of capital returns. Likewise, BMO Capital Markets boosted its target from $69 to $72 and reiterated an “Outperform” stance. Their focus was on the company’s strong quarterly results and capital flexibility, particularly its disciplined buyback strategy and stable dividend policy.
📊 The average analyst price target now sits at $62.90, offering some upside from the current price levels. There’s a generally upbeat consensus, with most analysts leaning toward buy or overweight ratings. While the exact degree of enthusiasm varies, the broader takeaway is clear—many on Wall Street see Equitable as a steady, undervalued name in the financial sector with room to run.
Earning Report Summary
Solid Performance with a Few Soft Spots
Equitable Holdings started 2025 with a steady but mixed first quarter. The company reported adjusted earnings of $1.30 per share, a bit lighter than the $1.39 it posted a year ago. But after stripping out one-time items, that number actually ticked up slightly to $1.35 per share. So while the headline figure might have looked flat at first glance, the core business seems to be holding its ground.
What really stood out was growth in assets under management and administration, which topped $1 trillion—a milestone that reflects a healthy flow of new money coming in. There were inflows across all of their main businesses, including $1.6 billion into Retirement, $2 billion into Wealth Management, and another $2.4 billion into Asset Management. For a company that thrives on long-term client relationships, this kind of momentum matters.
Equitable didn’t sit still when it came to capital deployment. They returned $335 million to shareholders during the quarter through a mix of dividends and buybacks. They also made a sizeable move in boosting their stake in AllianceBernstein, bringing their ownership up to roughly 69 percent. That’s not a casual step—it shows continued belief in the long-term value of that relationship.
Another big decision on the horizon is the reinsurance transaction with RGA. This deal, when finalized, is expected to free up more than $2 billion in capital. More importantly, it would help Equitable reduce its exposure to mortality risk, which can be a real swing factor in earnings.
Leadership’s Take
CEO Mark Pearson described the quarter as one where the company showed strength despite a tough macro environment. He pointed out how their clients are leaning on them more than ever for advice around retirement and investment planning. That kind of engagement doesn’t always show up immediately in the numbers, but it builds loyalty—and over time, recurring revenue.
Pearson also emphasized that Equitable remains committed to being smart with its balance sheet. Whether it’s managing risk, returning capital, or investing in areas like technology and advice services, the focus is on delivering consistent value, not chasing short-term wins.
All in all, the quarter reflected a company that’s balancing discipline with long-term planning. The results weren’t blowout, but they showed resilience, and more importantly, set the tone for a measured, shareholder-friendly approach in the months ahead.
Chart Analysis
Momentum and Moving Averages
EQH has shown a fairly constructive trend over the past year. The 200-day moving average has held a consistent upward slope, signaling long-term strength. Price stayed above this level for most of the year, only briefly dipping below in late April before quickly recovering. The 50-day moving average, which had been supportive for several months, recently turned lower, indicating a shorter-term pause in momentum. However, with the price now regaining ground and trading close to the 50-day line, it may be attempting to stabilize and reclaim some of that lost traction.
The recent convergence of the 50- and 200-day averages suggests a potential inflection point. That kind of setup often draws attention from investors looking for reentry after a consolidation phase. While the stock has seen some volatility, the broader structure remains intact, supported by rising longer-term support levels.
Volume and Price Action
Volume patterns show several notable spikes, particularly during sharp moves in either direction. These bursts in activity tend to align with earnings periods or broader market events. Overall, volume has been relatively steady, with no major exodus or capitulation selling. That’s usually a healthy sign of conviction among holders.
In April, a noticeable dip in price was met with a high-volume reversal, suggesting strong buying interest stepped in. That bounce came after the stock fell below the 50-day average but didn’t approach the 200-day level, which indicates some underlying strength and interest at slightly lower levels.
RSI and Relative Strength
Looking at the RSI, EQH has oscillated within a healthy range for most of the year. It rarely pushed too far into overbought territory, and when it dipped near oversold conditions, it quickly rebounded. That kind of behavior often reflects steady institutional accumulation rather than speculative trading.
Currently, RSI is climbing again, moving out of a short-term oversold stretch from early April. This shift could support further upside in the near term, especially if the price holds above the 50-day average. Sustained RSI levels in the 50–70 zone usually accompany strong, steady trends.
Overall Structure
EQH’s chart presents the picture of a company with stable, upward-sloping long-term price support, interrupted by short-term volatility. Despite recent consolidation, the stock hasn’t broken any critical support levels, and its ability to bounce back after dips adds to the case for a durable underlying trend. The stock’s ability to consistently find buyers at lower levels, paired with rising support from the 200-day average, is a positive technical sign for those focused on stability and longer-term value growth.
Management Team
Equitable Holdings is led by a management team that brings a steady, measured approach to running the business. Mark Pearson, the CEO, has been at the helm since the company separated from AXA. His background in financial services, particularly insurance and wealth management, has shaped EQH’s disciplined strategy. Under his leadership, the focus has remained on improving capital efficiency and returning value to shareholders, rather than chasing growth for its own sake.
Supporting him is a leadership bench that knows how to navigate complex market environments. CFO Robin Raju has kept a tight grip on capital deployment, ensuring that share repurchases, dividends, and strategic investments stay aligned with the company’s long-term goals. Together, the leadership team has taken deliberate steps to reduce risk, such as moving forward with reinsurance transactions and building up stake in complementary businesses like AllianceBernstein. Their track record suggests a preference for consistency over flash, and that’s been reflected in how they manage capital, communicate with investors, and adapt to economic shifts.
Valuation and Stock Performance
The stock has moved up close to 29 percent over the past year, which is impressive, but it hasn’t pushed the valuation into stretched territory. EQH still trades at a forward price-to-earnings ratio of about 6.76, significantly below the broader market and even many peers in the financial space. That kind of discount hints at potential upside, especially for investors who take a longer view and are focused on earnings stability.
On paper, the price-to-book ratio might look high, but that metric can be misleading for companies with large insurance liabilities and less tangible capital. A better way to look at EQH is through return on equity and free cash flow, both of which are strong. Return on equity is especially eye-catching, sitting above 38 percent, which reflects strong profitability relative to the company’s capital base.
Technically, the stock remains in an uptrend. It has bounced off key moving averages multiple times, and even when it’s faced short-term dips, it hasn’t broken through longer-term support levels. Investors seem willing to step in when the stock pulls back, which speaks to underlying confidence. Even with the run-up in price, EQH hasn’t outpaced its fundamentals, which gives it a more grounded risk-reward profile than some other names that have moved purely on momentum.
Risks and Considerations
There are still risks to keep in mind. One of the most obvious is interest rate volatility. While higher rates can help boost investment income in the near term, they also bring potential liabilities, especially when it comes to reserve requirements and product pricing. EQH needs to carefully manage how rate moves affect both the asset and liability sides of its balance sheet.
Another ongoing concern is market sensitivity, especially through the AllianceBernstein platform. Fluctuations in equity and fixed income markets directly impact assets under management, which in turn affects fee income. If markets become more volatile or experience a prolonged downturn, that could soften revenue in this part of the business.
The company also has to keep an eye on regulatory shifts. Insurance and financial companies are subject to ongoing changes in how they must manage capital, disclose risks, and calculate reserves. Any major updates from regulators could require changes in how EQH structures its business or reports results.
Finally, the company has committed to returning capital through dividends and buybacks. That approach works well as long as earnings and cash flows remain stable. But if there’s a disruption in operating income, there’s always the chance that capital return plans would have to be adjusted, at least temporarily.
Final Thoughts
Equitable Holdings continues to build value in a quiet, methodical way. The company isn’t flashy, and it isn’t trying to reinvent the wheel. Instead, it’s focused on doing the basics well—delivering consistent earnings, generating cash, and returning capital to shareholders. That kind of approach doesn’t always grab attention, but it tends to reward patience over time.
Leadership has been steady in its direction, choosing to derisk the business where possible while also reinforcing its core strengths. The stock has climbed, but valuations remain reasonable when compared to earnings and cash flow. There’s still room for further gains, particularly if the company continues to grow income and manage capital prudently.
There are risks, as there always are in financial services, but so far, EQH has shown the ability to navigate through them with a level head and a steady hand. The strategy is clear, the execution has been solid, and the company continues to make choices that prioritize long-term value over short-term hype.
For those looking at companies that don’t just talk about discipline but actually demonstrate it quarter after quarter, EQH offers a compelling example. The momentum may not be dramatic, but it’s built on a solid foundation—and in this space, that matters.