Updated April 2025
Known for its focus on retirement, investment, and insurance solutions, Voya has transformed itself over the past decade. Once burdened with a heavier, insurance-based structure, the company has now leaned into a more efficient, fee-driven model. And that shift has opened up some meaningful opportunities for dividend-focused investors.
The company emerged from ING Group in 2013 and has since been on a clear path: simplify operations, focus on core strengths, and return more to shareholders. With a current market value around $6.6 billion and a forward P/E ratio under 9, the stock screens attractively for value-minded investors. But what really stands out? That growing dividend and what it says about where the business is headed.
Recent Events
Voya’s most recent quarter brought a mixed bag. On one hand, revenues were up 10.5% year-over-year, which is a strong showing in this environment. But earnings slipped by about 20%, a reminder that rising costs and some margin pressures are still part of the picture. Even so, the broader trend remains solid, and the fundamentals haven’t lost their appeal.
The company’s balance sheet is in good shape. Voya sits on $1.74 billion in cash, and its debt load—while not insignificant—is manageable, with a debt-to-equity ratio around 72%. It’s also sporting an impressive return on equity north of 12%, which shows the company is getting solid results from its capital base.
One number that jumps out is the payout ratio: just 27.55%. That gives management a lot of breathing room to keep growing the dividend without putting pressure on earnings. For income investors, that’s exactly the kind of setup you want.
💰 Key Dividend Metrics
📈 Forward Dividend Yield: 2.61%
📉 Trailing Dividend Yield: 2.50%
📆 5-Year Average Dividend Yield: 1.42%
💵 Forward Annual Dividend Rate: $1.80
🧮 Payout Ratio: 27.55%
📬 Recent Dividend Date: March 27, 2025
📌 Ex-Dividend Date: February 25, 2025
That jump from the five-year average yield to the current rate says a lot. Voya is clearly putting more emphasis on rewarding shareholders through regular payouts.
Dividend Overview
Voya’s dividend isn’t flashy, but it’s deliberate and getting stronger. A forward yield of 2.61% sits comfortably above what you’ll find with many larger-cap financial names, especially when you factor in how much room the company has to grow it. It’s not overextended, and that matters.
The most recent payout of 45 cents per share was sent out in late March, part of a consistent trend that’s becoming increasingly attractive. Even through market headwinds and sector shifts, Voya has kept its dividend steady and on schedule. That kind of consistency is something long-term income investors prize.
What’s also notable is how cleanly the dividend is supported. Voya doesn’t rely on financial acrobatics or one-time gains to cover its payouts. Cash flow is strong. Capital needs are moderate. And there’s a track record now that shows management is committed to maintaining and building on what’s been put in place.
Dividend Growth and Safety
One of the more interesting developments with Voya is how it has shifted from just offering a dividend to actively increasing it. Over the last five years, the payout has doubled—modestly in dollar terms, but meaningfully in signaling. The move from $1.70 to $1.80 in the most recent forward payout might seem incremental, but it’s backed by a strong balance sheet and improving free cash flow.
Speaking of cash flow, Voya generated $1.65 billion in levered free cash flow over the past year. That’s more than enough to sustain the current dividend with room left over. Operating cash flow came in at $1.34 billion, further reinforcing that the fundamentals are solid underneath the headline numbers.
The company’s liquidity position is also a plus. That $1.74 billion in cash is more than just a buffer—it’s part of what gives Voya the flexibility to stay shareholder-friendly even if business conditions get a bit choppy. And with a current ratio of 8.6, it’s clear the company isn’t running into short-term financing issues anytime soon.
One more thing to consider: institutional ownership is high—over 100% of the float, thanks to some short-covering strategies and overlapping holdings. But that kind of presence from large-scale investors shows confidence in Voya’s long-term plans, including its approach to dividends.
There’s been no dilution in recent quarters, with shares outstanding holding steady at around 95.5 million. Combine that with periodic buybacks, and it’s clear that management isn’t just focused on paying dividends—they’re also working to increase the value of those dividends over time.
For investors focused on dependable income that grows alongside a fundamentally sound business, Voya Financial is showing it’s more than up to the task.
Cash Flow Statement
Voya Financial reported $911 million in operating cash flow over the trailing twelve months, a notable drop from the $1.14 billion seen the year before but still firmly in healthy territory. Free cash flow matched that at $911 million, indicating limited capital expenditure and a clean cash generation profile. This reflects solid underlying business performance, especially when viewed against the relatively modest cash from operations posted just a few years ago.
On the financing side, the company returned significant capital to shareholders, with $640 million spent on share repurchases. Total financing cash outflows hit $759 million for the period, while investing activity was far more muted, totaling only $141 million in outflows. Debt issuance was $397 million, helping manage liquidity as Voya continued repurchasing stock and maintaining its dividend. Despite the heavy cash activity, the company ended the period with a stable $217 million in cash, slightly up from last year.
Analyst Ratings
📉 In recent months, Voya Financial has seen a shift in how analysts view the stock, with some pulling back their expectations while others have become more optimistic. On March 28, 2025, BofA Securities downgraded the stock from Neutral to Underperform, dropping the price target to $71 from $79. The reasoning behind the downgrade centered on the company’s updated earnings outlook, which projected income between $700 and $780 million for 2025. That translates to an EPS range of $7.10 to $7.90—below the broader analyst consensus of $8.14. The reduced forecast raised some caution about the strength of its cash flow generation moving forward.
📈 Just a month earlier, Morgan Stanley took a different stance. On February 28, 2025, the firm upgraded Voya from Equal Weight to Overweight, bumping the price target up to $87 from $76. Analysts cited confidence in Voya’s long-term strategy and praised the stability and growth potential in its Health Solutions segment. This part of the business continues to be a bright spot and has helped offset challenges in other areas.
📊 As it stands now, the average 12-month price target for Voya Financial sits at around $80.11. Price targets range from $71 on the low end to $87 on the high side, suggesting moderate upside from current trading levels.
Earnings Report Summary
Slower Quarter, but Still Solid Footing
Voya Financial’s fourth quarter of 2024 came in a bit lighter than last year, with net income at $93 million or $0.94 per share. That’s down from $118 million and $1.10 per share a year ago. The big drag this time was the Health Solutions segment—specifically the Stop Loss business, where higher-than-expected claims ate into profitability.
On an adjusted basis, earnings were $138 million, or $1.40 per share, compared to $174 million, or $1.63 a year prior. Again, Health Solutions was the main headwind, but other parts of the business held up pretty well, softening the blow.
Full-Year Numbers Tell a More Positive Story
When you zoom out and look at the full year, the numbers look more encouraging. Net income totaled $626 million, or $6.17 per share, a nice step up from $589 million and $5.42 in 2023. Adjusted earnings were slightly lower than last year, coming in at $736 million, or $7.25 per share, versus $763 million and $7.02 the year before.
What’s behind the mixed picture? Strength in both Wealth Solutions and Investment Management helped counterbalance the tougher conditions in Health Solutions.
Wealth Solutions and Investment Management Deliver
Wealth Solutions had a strong showing. Pre-tax earnings in that segment jumped to $210 million for the quarter, up from $147 million last year. That came largely from higher fee income and a boost in alternative investment performance. By the end of the year, client assets hit $612 billion, marking a solid 12% increase.
Investment Management also did its part. It posted $66 million in pre-tax earnings for the quarter, a good bump from $45 million the year before. With $3.4 billion in net inflows and favorable market conditions, it’s clear the segment continues to gain traction.
Health Solutions Takes a Hit
The rough patch came from Health Solutions. That segment reported a $102 million loss for the quarter, a sharp reversal from the $44 million gain last year. Higher loss ratios in Stop Loss caused the slip, but the company is already responding with pricing adjustments and tighter underwriting standards to bring things back in line.
Returning Capital and Looking Ahead
Despite some bumps, Voya kept delivering for shareholders. It returned $800 million through buybacks and dividends during the year. And looking forward, the recently closed acquisition of OneAmerica’s retirement plan business could open up new growth opportunities while deepening Voya’s footprint in the retirement services space.
Chart Analysis
Moving Averages Show a Momentum Shift
Looking at the chart for VOYA, the first thing that stands out is how the 50-day moving average (red line) crossed above the 200-day moving average (blue line) in early October before beginning a steady decline by mid-December. That crossover in the fall was a short-lived bullish signal, but the weakness since then reflects some broader softness. The 50-day is now sloping downward and trading below the 200-day again, signaling that near-term momentum has cooled.
Price has also hovered near or slightly below the 200-day average for much of the past two months, suggesting hesitation from investors and a lack of follow-through buying pressure. This doesn’t necessarily mean a breakdown is coming, but it does show the stock is struggling to regain its footing.
Volume Is Steady but Unconvincing
Trading volume over the past year has remained relatively stable without any major spikes, aside from a few brief periods in late January and mid-March. These surges didn’t lead to any meaningful breakout in price, hinting that the larger moves were likely driven by reactions to news or earnings events rather than broad accumulation.
With volume failing to confirm upward price moves, it becomes clear that buying conviction remains cautious. That kind of pattern suggests traders and institutions alike are waiting for clearer signals before stepping in more aggressively.
RSI Tilting Toward Overbought
The RSI indicator at the bottom shows the stock is approaching the overbought threshold of 70, having climbed steadily since mid-March. The last few times RSI hit these levels—in early September and again in late February—it coincided with short-term tops in the price. That doesn’t mean a pullback is guaranteed, but it’s a signal that upside could be limited without a fresh catalyst.
Interestingly, there haven’t been many RSI dips into oversold territory, which reflects underlying support even during pullbacks. That type of RSI behavior often matches stocks that are consolidating rather than trending strongly in either direction.
Price Action Hints at Base Formation
From early February through now, the chart shows a series of higher lows despite volatility—an early sign of base-building. While the stock is still below recent highs, there’s a sense it may be carving out a bottom around the 66–69 range. If that area continues to hold, it could lay the groundwork for a more stable advance in the months ahead.
Management Team
Voya Financial is led by a group of seasoned professionals with deep roots in the financial services industry. At the top is Heather Lavallee, who currently serves as Chief Executive Officer and sits on the company’s Board of Directors. Her leadership has helped shape the company’s strategy toward customer-focused, tech-driven solutions, while maintaining a strong culture of operational discipline.
Michael Katz was appointed as Chief Financial Officer effective January 1, 2025. He’s been with the company for over two decades and brings a strong financial background that has helped guide Voya through multiple market cycles. His insights and continuity within the organization offer a level of stability that shareholders can appreciate.
Santhosh Keshavan, Executive Vice President and Chief Information Officer, plays a key role in modernizing Voya’s infrastructure. His focus on digital transformation has helped position the company to better serve clients while enhancing operational efficiencies.
Another integral part of the team is Matt Toms, who serves as CEO of Voya Investment Management. With years of experience in asset management, he brings a strategic lens to how the firm navigates investment cycles and manages risk. Together, this leadership group has a balanced mix of vision, experience, and executional strength that supports the company’s long-term direction.
Valuation and Stock Performance
As of early April 2025, Voya’s stock trades at just over $69 per share. When comparing this to internal valuation models, it appears to be trading at a discount to its estimated intrinsic value. While estimates vary, there’s a general belief among some analysts that the stock could be undervalued by as much as 50 percent or more, based on forward-looking earnings and cash flow expectations.
Over the past 12 months, VOYA’s stock has had its share of ups and downs, reflecting both market volatility and shifts within its core businesses. There were moments of strength, particularly in the third quarter of 2024, but softness emerged later in the year, largely tied to underperformance in the Health Solutions segment.
Despite these swings, the company has consistently returned capital to shareholders through a combination of dividends and stock buybacks. This ongoing return of capital reflects both confidence in the business and a thoughtful capital allocation strategy. The balance between maintaining liquidity and rewarding shareholders has been a steady theme in the company’s approach.
Risks and Considerations
Every investment comes with risks, and Voya Financial is no exception. One of the more prominent considerations is regulatory. As a financial services firm operating across insurance, investment, and retirement platforms, Voya is subject to a range of oversight. Regulatory changes can have far-reaching implications on capital requirements, product design, and customer interaction models.
Market risk is another factor. Because a portion of Voya’s earnings are tied to the performance of its investment portfolios, periods of market turbulence or declining asset values can put pressure on results. That includes both direct impacts on fee-based revenue and indirect effects like reduced customer activity or hesitancy around financial products.
Operationally, the company relies heavily on its digital infrastructure, which makes it vulnerable to cybersecurity threats and system outages. While Voya has invested in technology to mitigate these risks, they are ever-evolving and require constant vigilance.
Talent retention and leadership continuity are also important. Though the current team is strong, any disruption in key leadership roles could affect strategy and execution. In a highly competitive space, keeping top-tier talent engaged and aligned is always a challenge.
Lastly, macroeconomic shifts—such as rising interest rates, inflationary pressures, or changing labor market dynamics—can influence customer behavior and overall demand for the company’s products and services.
Final Thoughts
Voya Financial has come a long way in refining its focus and realigning its business model to become more agile and efficient. With a leadership team that blends experience and innovation, the company continues to find ways to grow responsibly while managing risk.
The current valuation offers a potentially attractive entry point for investors who are comfortable navigating the ebb and flow of the financial services sector. Its commitment to returning capital, improving operational efficiency, and building a strong client-centric platform all add to its long-term appeal.
Like any company in this space, Voya isn’t without its challenges. But its efforts to modernize, diversify revenue streams, and drive shareholder value create a compelling case for those looking at quality firms with a disciplined foundation and a forward-looking approach.