Updated 3/10/25
The Hartford Insurance Group, commonly known as HIG, has been a cornerstone in the insurance industry for over two centuries. This Connecticut-based company specializes in property and casualty insurance, employee benefits, and mutual funds. Over the years, Hartford has built a reputation for reliability, consistently delivering strong financial results while rewarding its shareholders with dividends.
For dividend investors, Hartford is a solid contender. It may not have the sky-high yields of some REITs or utilities, but it offers stability, financial strength, and a commitment to steady dividend growth. With a history of consistent payouts and a strong balance sheet, it’s the kind of stock that long-term income investors can appreciate.
Key Dividend Metrics
💰 Dividend Yield: 1.77% (Forward)
📈 5-Year Average Dividend Yield: 2.25%
💵 Annual Dividend Rate: $2.08 per share
📆 Next Dividend Payment: April 2, 2025
⚖ Payout Ratio: 18.65% (Plenty of room for increases)
📊 Dividend Growth Streak: 13+ years
🚀 Recent Dividend Growth Rate: Consistently strong
Dividend Overview
Hartford may not be a high-yield play, but it delivers where it counts—steady, predictable income. Its forward dividend yield of 1.77% may seem modest at first glance, but when paired with its strong track record of growth and safety, it becomes an attractive option for investors looking for dependable income.
The company has been rewarding shareholders with consistent dividend increases, with the most recent quarterly payout set at $0.52 per share. Compared to its five-year average dividend yield of 2.25%, the current yield is slightly lower, likely due to strong stock price performance. That’s not necessarily a bad thing—it’s a sign of a company with increasing earnings and growing investor confidence.
Dividend Growth and Safety
One of the biggest strengths of Hartford’s dividend is how well-covered it is. With a payout ratio of just 18.65%, the company has plenty of room to keep raising dividends in the years ahead. Unlike companies that stretch themselves thin by paying out too much of their earnings, Hartford keeps things conservative.
A low payout ratio means the dividend isn’t at risk even if the economy takes a downturn. On top of that, Hartford generates plenty of cash to sustain and grow its dividend. Over the past year, the company brought in $5.91 billion in operating cash flow, with $5.05 billion in free cash flow after expenses. That kind of financial flexibility ensures that dividends remain well-funded.
For investors concerned about dividend reliability, Hartford’s numbers are reassuring. It has increased its dividend consistently for over a decade and remains in excellent financial health to continue that trend.
Chart Analysis
The Hartford Insurance Group (HIG) stock chart presents an interesting technical setup, showing a mix of upward momentum and some recent consolidation. Several key indicators help paint a clearer picture of the stock’s current trend and potential movement in the coming weeks.
Moving Averages and Trend Strength
The 50-day moving average (light blue) is currently hovering just above the 200-day moving average (dark blue), which is typically a positive sign. This positioning suggests that the stock is in a bullish trend overall, though there was a period of volatility in the past few months where the price dipped below the 50-day moving average.
Looking at recent price action, the stock has rebounded from a previous dip and is now trading above both moving averages. This suggests that buyers have stepped in to support the stock at lower levels. If the price continues to hold above these moving averages, it could indicate continued strength.
Volume and Market Participation
Volume levels have remained relatively steady, with occasional spikes on larger trading days. There are a few notable volume surges, particularly around sharp price movements. These bursts of trading activity often signal institutional involvement, which can drive longer-term trends.
One of the key takeaways from the volume profile is that there hasn’t been excessive selling pressure. Even during the recent pullback, volume didn’t spike dramatically, which suggests that selling was more controlled rather than panic-driven. The most recent trading days show average volume levels, indicating a balanced market between buyers and sellers.
RSI and Momentum
The Relative Strength Index (RSI) indicator at the bottom of the chart has been fluctuating within a moderate range. It hasn’t hit extreme overbought or oversold levels recently, meaning there hasn’t been excessive buying or selling pressure.
Currently, the RSI is trending slightly higher, which aligns with the recent upward price movement. If it continues to rise toward 70, it could indicate that the stock is approaching an overbought condition, where a pullback or consolidation may follow. However, if RSI remains in the mid-range, it suggests there is still room for further upside.
Price Action and Recent Candles
The last few daily candles indicate a strong move off the recent lows, with the price closing near the highs of the day. This kind of price action often points to sustained buying interest. There were a couple of days with longer wicks, which suggest some intraday volatility, but buyers have managed to push the stock higher by the close.
The key level to watch moving forward is whether the stock can stay above the recent high near 118.50. If it breaks above that level with strong volume, it could trigger another leg higher. On the downside, holding above the 50-day moving average would be an encouraging sign for bulls.
Analyst Ratings
🔼 Upgrades
Several analysts have taken a bullish stance on The Hartford Insurance Group (HIG) in recent months. 📈 Barclays recently upgraded the stock from “equal weight” to “overweight,” increasing their price target from $130 to $135. This shift was driven by the company’s strong underwriting results and steady financial performance.
📊 Piper Sandler also raised its price target, moving it from $127 to $130 while maintaining an “overweight” rating. Analysts at the firm cited improved investment income and operational efficiency as key reasons for their optimistic outlook.
🔽 Downgrades
Not all analysts share the same enthusiasm. ⚠️ StockNews.com recently adjusted its stance, downgrading HIG from “buy” to “hold.” The decision was based on concerns over the stock’s ability to maintain its growth momentum in the face of potential macroeconomic headwinds.
Similarly, 🏦 BofA Securities lowered its rating from “buy” to “neutral” and adjusted its price target to $121. Analysts pointed to the broader insurance sector’s exposure to interest rate fluctuations, which could affect investment income and profitability.
🎯 Consensus Price Target
The consensus analyst rating for HIG currently sits at “Moderate Buy,” with an average 12-month price target of $122.94. Price targets among analysts vary, ranging from $95 on the low end to $144 on the high end, reflecting different outlooks on how economic conditions may impact the company’s future performance.
These varying perspectives highlight the importance of weighing both HIG’s fundamental strengths and external market factors when considering it as an investment.
Earnings Report Summary
The Hartford Insurance Group wrapped up 2024 on a strong note, posting solid numbers across the board. Fourth-quarter net income came in at $848 million, or $2.88 per share, marking an 11% increase from the same period in 2023. For the full year, earnings jumped even higher, reaching $3.1 billion, or $10.35 per share—a significant 24% boost compared to the previous year.
Property and casualty insurance still going strong
Hartford’s property and casualty (P&C) segment showed impressive growth, driven by steady demand and solid underwriting. Premiums written in the fourth quarter climbed 7% from the prior year, while full-year growth hit 10%.
- Commercial insurance premiums were up 6% for the quarter and 9% for the full year, showing that businesses continue to turn to Hartford for coverage.
- On the personal insurance side, premiums surged 12% in the fourth quarter and 13% for the year, reflecting strong customer retention and pricing adjustments.
Investment income on the rise
One of the bright spots in the report was the company’s investment income. Hartford pulled in $714 million in net investment income in the fourth quarter, up 9% from a year ago. This increase was fueled by higher yields on reinvestments and an overall rise in invested assets, providing a nice boost to overall earnings.
Group benefits facing some headwinds
Not everything was smooth sailing, as the group benefits segment saw some declines. Net income for the quarter dropped to $126 million, down from $176 million the year before. Core earnings also dipped, coming in at $139 million compared to $174 million a year ago.
- The loss ratio ticked up to 70.6%, slightly higher than the 69.9% seen in the fourth quarter of 2023.
- The expense ratio also increased to 26.7% from 24.2%, indicating higher costs in this segment.
Hartford funds showing positive momentum
The Hartford Funds business had a solid finish to the year, with net income rising to $49 million in the fourth quarter, up from $47 million a year ago. Core earnings also saw a bump, reaching $51 million compared to $39 million last year.
- Assets under management averaged $142 billion in the fourth quarter, a healthy 14% increase from the previous year.
- Net inflows were strong, bringing in $796 million, a huge turnaround from the $3 billion in net outflows reported in the fourth quarter of 2023.
Corporate segment losses slightly higher
The corporate division posted a net loss of $33 million for the fourth quarter, slightly worse than the $24 million loss in the same period a year ago. Core losses also edged higher, coming in at $39 million versus $36 million in the fourth quarter of 2023.
A solid year for Hartford
Overall, The Hartford closed out 2024 with a strong financial performance. Growth in property and casualty insurance and investment income helped offset some weaker results in group benefits. The company continues to show resilience in a competitive insurance market, and its diversified business lines have helped it maintain momentum heading into the new year.
Financial Health and Stability
A good dividend stock needs strong financials to back it up, and Hartford delivers on that front.
- Profitability remains solid, with a profit margin of 11.71% and an operating margin of 16.46%, showing the company runs efficiently.
- A return on equity of 19.58% highlights effective use of shareholder capital.
- Debt levels are reasonable, with a debt-to-equity ratio of 27.43%, ensuring the company isn’t overleveraged.
- Hartford has $4.25 billion in cash, giving it the flexibility to invest in growth, pay dividends, or buy back shares.
One of the key metrics that long-term investors appreciate is book value per share, which stands at $56.03. That’s a sign of a company with strong underlying assets and a solid foundation.
Valuation and Stock Performance
Hartford has been on a steady climb, with its stock price trading between $94.47 and $124.90 over the past year. Right now, it’s sitting at around $117.39, near the higher end of that range, which suggests investors are confident in its future.
From a valuation perspective, it remains attractively priced.
- A forward price-to-earnings ratio (P/E) of 10.15 suggests the stock isn’t overly expensive.
- A price-to-book ratio (P/B) of 2.09 is reasonable for a strong financial services company.
- A price-to-sales ratio of 1.33 indicates it’s fairly valued based on revenue.
For those looking at long-term performance, Hartford has outpaced the S&P 500 over the past year, with a 20.08% gain compared to the S&P 500’s 12.74% increase. The stock has also been trading above both its 50-day moving average of $112.43 and its 200-day moving average of $111.19, showing strong momentum.
Risks and Considerations
No investment is without risk, and Hartford is no exception. While it’s a financially strong company, there are a few factors that investors should keep in mind.
- Interest Rate Exposure – Like many insurers, Hartford holds a large investment portfolio, much of it in bonds. Changes in interest rates can impact returns on those investments, affecting profitability.
- Catastrophic Events – Natural disasters, extreme weather, and unexpected claims can cause short-term earnings volatility. While Hartford has risk management in place, it’s always a factor in the insurance industry.
- Competitive Pressure – The insurance sector is highly competitive, with pricing wars and policyholder retention playing key roles in profitability.
- Stock Volatility – While Hartford’s beta of 0.91 suggests it’s less volatile than the market overall, it still experiences fluctuations, particularly during economic downturns.
While these risks are worth noting, they don’t change the overall strength of the company. Hartford has weathered economic cycles before and continues to thrive.
Final Thoughts
Hartford Insurance Group is a compelling choice for dividend investors who value reliability and financial strength. It may not be the highest-yielding stock out there, but its steady dividend growth, low payout ratio, and strong cash flow make it a dependable option for those looking for long-term income.
The company’s financials are in great shape, with low debt, solid cash reserves, and a strong return on equity. It’s also trading at a reasonable valuation, making it an attractive pick for investors seeking stability.
For those focused on income and capital appreciation, Hartford checks a lot of boxes. It’s not a flashy stock, but it’s a dependable one—exactly the kind of investment that can provide peace of mind in a well-balanced portfolio.
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