Key Takeaways
📈 MetLife offers a 2.89% dividend yield with a conservative 35.6% payout ratio, supported by steady annual increases and strong financial discipline.
💰 The company generated $16.5 billion in operating cash flow over the trailing twelve months, fully covering dividends and supporting share buybacks.
🔍 Analysts remain positive, with a consensus price target of $94.17 and multiple firms reaffirming buy or overweight ratings based on strong earnings and capital management.
Updated 6/2/25
MetLife, Inc. (MET) stands as one of the largest and most financially sound insurance providers globally, with a legacy rooted in over a century of delivering life insurance, annuities, employee benefits, and asset management. Its consistent operating performance, disciplined capital management, and strong balance sheet make it a reliable choice for income-focused investors.
The company’s forward-looking strategy emphasizes risk-adjusted growth, shareholder returns, and efficient execution. With over \$16 billion in operating cash flow, a 2.89% dividend yield supported by a 35.6% payout ratio, and a leadership team deeply experienced in navigating complex markets, MetLife offers a compelling blend of income stability and financial strength.
Recent Events
MetLife’s latest quarterly numbers gave investors more reasons to pay attention. Revenue jumped 15.6% year-over-year, while earnings per share rose 9%. That growth, in today’s environment, is impressive—and even more so when it’s backed by solid cash flow. The company pulled in $16.5 billion in operating cash flow over the trailing twelve months, providing a strong cushion to cover both operating needs and shareholder returns.
The stock is up over 10% in the past year, and it’s been relatively calm in the face of broader market volatility. With a beta of just 0.84, MetLife tends to move less than the overall market. That’s a nice feature if you’re looking to protect your income stream during stormier economic times.
At $78 and change, the stock is hovering close to its 50-day moving average. It’s not far off from its recent highs, and importantly, there’s no panic selling going on here. Short interest is low, institutional ownership is high, and insider holdings—at over 16%—show that people inside the company believe in the long-term story.
Key Dividend Metrics
📈 Dividend Yield: 2.89%
💸 Annual Dividend Rate: $2.27
🔒 Payout Ratio: 35.62%
📆 Ex-Dividend Date: May 6, 2025
💰 Next Dividend Date: June 10, 2025
📊 5-Year Average Yield: 3.17%
🛡️ Cash Flow Coverage: Strong, with $16.5B in trailing 12-month operating cash flow
📉 Debt Load: Well-supported, given $30B in cash
📈 Dividend Growth: Steady, not flashy
Dividend Overview
MetLife isn’t going to wow you with a headline yield, but what it does offer is a dependable stream of income that comes with a whole lot of financial strength behind it. At 2.89%, the current yield is slightly below its five-year average, but it’s still respectable—especially when you consider the low payout ratio of 35.6%. That leaves a lot of room for continued payments and potential increases.
What stands out even more is how the dividend is funded. This isn’t a case of stretching to keep investors happy. The payout is well-covered by earnings, and the company is sitting on a large cash pile of around $30 billion. That sort of balance sheet strength gives income investors real peace of mind.
There’s also a rhythm to how MetLife handles its dividend. It’s not trying to chase trends or overpromise. Instead, it keeps things steady—gradual raises when it makes sense, no surprises when markets get rocky. That’s the kind of quiet dependability that becomes the backbone of an income portfolio.
Dividend Growth and Safety
Dividend growth here won’t blow the doors off. But it does move in the right direction. From $2.18 to $2.27 year-over-year, that’s a solid 4% bump—enough to keep pace with inflation and show management is committed to rewarding shareholders. There’s room for more increases too, given that earnings per share are currently sitting at $6.12 and growing.
MetLife also has plenty of breathing room from a valuation standpoint. Trading at just 8.58 times forward earnings, the stock isn’t expensive. That matters because it means the market isn’t pricing in unrealistic growth expectations. Investors are getting a solid return today without overpaying for tomorrow.
As for debt—yes, the number looks big at nearly $48 billion. But context matters. The company has a strong current ratio of 1.60 and carries $30 billion in cash. That cushions the impact and makes the debt load much more manageable.
Book value per share is $40.83, which puts the price-to-book ratio just under 2. That’s reasonable for a financial services firm with consistent earnings, especially one that’s committed to returning capital without stretching its balance sheet.
One more thing to like: management is clearly aligned with shareholders. With insiders holding more than 16% of the company, they have every reason to keep the dividend not just stable, but growing responsibly over time.
Cash Flow Statement
MetLife’s cash flow performance over the trailing twelve months highlights its consistent ability to generate strong operating income. Operating cash flow came in at $16.53 billion TTM, continuing an upward trend from $14.6 billion the year before and maintaining growth over each of the past five years. This steady climb reflects not just profitability, but a high level of operational efficiency. Free cash flow matched operating cash flow, indicating minimal capital expenditure during the period—a positive for shareholders focused on dividend strength and flexibility.
On the investing side, the company posted an outflow of $12.19 billion, consistent with historical trends as MetLife allocates capital toward its investment portfolio and long-term strategic assets. Financing activities saw a net outflow of $2.65 billion, primarily driven by debt repayments and a $3.45 billion stock repurchase. These actions, combined with a stable end cash position of $21.53 billion, suggest the company is managing capital prudently while still returning value to shareholders. Even with ongoing investments and shareholder returns, MetLife’s cash position remains solid, a key support for its dividend strategy.
Analyst Ratings
📈 MetLife has recently seen some shifts in analyst sentiment, with both upgrades and downward adjustments to price targets reflecting nuanced views of its outlook. Morgan Stanley bumped its price target from $94 to $99 while reiterating an “Overweight” rating. The firm pointed to strong cash flow, disciplined capital return strategies, and consistent earnings as reasons for their confidence.
🚀 UBS followed suit, increasing its target from $94 to $98, and also maintained a “Buy” stance. Analysts there noted the insurer’s solid revenue growth and balance sheet strength as key reasons for their bullish view. MetLife’s ability to navigate interest rate changes while keeping expenses in check is also drawing positive attention.
🔻 On the other side, Barclays trimmed its price target from $95 to $88 but kept its “Overweight” rating. Their more cautious outlook stems from concerns over earnings sensitivity in uncertain economic conditions. JPMorgan made a similar move, adjusting their target from $88 to $86, yet they too held firm with an “Overweight” position. The slight downgrade seems more a reflection of broader market caution than company-specific weakness.
🎯 The current analyst consensus price target averages around $94.17, suggesting some potential upside from the recent trading range. The high end of expectations reaches $110, while the lower end lands at $86, illustrating a healthy but varied range of analyst expectations.
Earning Report Summary
MetLife kicked off 2025 with a solid performance, showing that its steady approach to financial management is still paying off. Net income for the quarter came in at $879 million, up 10% from the same time last year. Premiums, fees, and other revenue grew to $13.6 billion, a 14% increase that reflects strong customer demand and effective execution across its businesses.
Adjusted earnings didn’t spike dramatically, but they did nudge upward—rising 1% to $1.3 billion, or $1.96 per share. That kind of quiet, consistent growth is something investors in a mature financial services firm tend to appreciate. Variable investment income also got a boost, up 26% to $327 million, thanks largely to gains from real estate and fund investments.
MetLife continued to reward shareholders, repurchasing about $1.4 billion of its stock during the quarter. And there’s more on the horizon—a new $3 billion buyback authorization was approved in April. Return on equity also moved up, climbing to 14.4% from 13.8% a year earlier. Book value per share rose slightly to $35.16, while the adjusted figure—excluding accumulated other comprehensive income—went up 4% to $55.01.
Segment Highlights
The Group Benefits segment stood out with a 29% jump in adjusted earnings, reaching $367 million. That growth came largely from favorable life underwriting margins. Retirement and Income Solutions also performed well, with a slight 1% gain to $401 million in adjusted earnings, helped by better investment returns and solid underwriting.
The Asia segment had a tougher quarter, seeing earnings dip 12% to $374 million. That decline was tied to changes in tax rules in Japan and some pressure on underwriting performance. Still, the broader geographic mix of MetLife’s business helped balance things out.
Looking Ahead
Company leadership emphasized their continued focus on delivering responsible growth and strong shareholder returns while managing risk carefully. One key move this quarter was the decision to reinsure about $10 billion in U.S. retail variable annuity and rider reserves. The goal here is to reduce tail risk and sharpen the focus on more predictable earnings.
Management struck a confident tone about the path forward. With a healthy balance sheet, rising cash flow, and a disciplined capital return strategy, MetLife appears set to keep delivering for shareholders in a way that’s sustainable, not speculative.
Management Team
MetLife’s leadership team is made up of seasoned professionals who bring deep experience and steady hands to the company’s operations. Michel A. Khalaf leads as President and Chief Executive Officer, steering the company’s long-term strategic direction. John D. McCallion, Executive Vice President and Chief Financial Officer, oversees the firm’s financial framework and capital deployment strategies.
Supporting the team is Marlene Debel, Executive Vice President and Chief Risk Officer, responsible for identifying and managing key risk exposures across the business. Monica M. Curtis, Executive Vice President and Chief Legal Officer, ensures the company’s legal affairs are aligned with its global operations, while Bill Pappas, Executive Vice President and Head of Global Technology and Operations, drives innovation and digital transformation. Together, this leadership team has helped MetLife maintain its focus on operational efficiency, shareholder value, and long-term stability.
Valuation and Stock Performance
MetLife’s stock has been navigating a narrow range, currently trading near $78 as of early June 2025. Over the past year, the share price has ranged from a low of $65.21 to a high of $89.05. While not immune to broader market trends, MetLife’s stock has remained relatively stable, underpinned by strong earnings and disciplined capital management.
The forward price-to-earnings ratio stands at 8.58, a level that suggests the stock is trading at a discount relative to its earnings potential. This lower multiple reflects both investor caution around the insurance sector and the market’s general skepticism in a higher interest rate environment. Yet, for long-term investors, this kind of valuation can be a compelling entry point. Analyst sentiment continues to lean positive, with a consensus price target of approximately $94.17, suggesting there’s room for the stock to move higher if the company continues to execute on its strategy.
Risks and Considerations
Like any financial services firm, MetLife faces its share of risks. The company is part of a highly regulated industry, and changes in laws or oversight—especially those related to insurance contracts or capital requirements—could influence profitability and strategy. Regulatory developments in both domestic and international markets require continuous monitoring and adjustment.
Macroeconomic conditions also play a significant role. Interest rates, inflation, and market volatility can impact investment income, product demand, and customer behavior. In addition, MetLife’s global presence brings exposure to currency fluctuations and geopolitical shifts. While the company is well-diversified, segments like Asia and Latin America bring both growth opportunities and added layers of risk. Competition is also intense, requiring constant adaptation and investment in technology and service delivery.
Final Thoughts
MetLife continues to position itself as a dependable player in the insurance and financial services space. The leadership team’s discipline, the firm’s solid earnings profile, and its strong cash flow give the company room to navigate industry challenges while returning value to shareholders. With steady dividend growth, a conservative payout ratio, and a long-term commitment to reducing risk exposure, MetLife has all the traits of a company built for income-focused investors.
While it isn’t a high-growth story, that’s not the point here. This is about consistency, quality, and long-term reliability. For those building a dividend-focused portfolio that leans on strong financials and measured capital returns, MetLife offers a compelling case worth considering.