We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equitable Holdings Hikes Dividend by 12.5%, But Yield Trails Industry
Read MoreHide Full Article
Equitable Holdings, Inc. (EQH - Free Report) recently announced that its board of directors approved an increase in quarterly dividends, consistent with its previously disclosed plan. The company will now pay out 27 cents per share, marking a 12.5% increase from the previous amount.
The new dividend will be paid out on June 9, 2025, to stockholders of record as of June 2. Based on the increased rate, the annual dividend amounts to $1.08 per share. The dividend yield, calculated based on the new payout and the closing price on May 21, is 2.1%, which is still lower than the industry average of 2.5%.
Moreover, EQH announced dividends on its preferred stock, including a $328.13 per share quarterly dividend on Series A 5.25% Non-Cumulative Perpetual Preferred Stock, a $618.75 semi-annual dividend on Series B 4.95% Non-Cumulative Perpetual Preferred Stock and a $268.75 per share quarterly dividend on Series C 4.30% Non-Cumulative Perpetual Preferred Stock.
Regarding its financial position, Equitable Holdings exited the first quarter of 2025 with total investments and cash and cash equivalents of almost $127.1 billion, while long-term debt was only $4.3 billion. The company is also improving its cash-generating ability. More than half of its cash flow comes from non-insurance business, providing diversification benefits. In the first quarter of 2025, it came up with $158 million in operating cash flow, improving from $31 million a year ago.
The company's Group Retirement business is expected to benefit from higher fee-based revenues. Its pre-tax earnings of $153 million jumped 5.5% in the first quarter. This positive momentum is likely to support EQH’s capital-deployment initiatives. It has a 60-70% payout ratio target of non-GAAP operating earnings. In the March quarter of 2025, Equitable Holdings paid out $74 million of cash dividends and repurchased $261 million worth of shares.
The Zacks Consensus Estimate for its 2025 bottom line is pegged at $6.63 per share, which suggests an 11.8% year-over-year increase. The same for 2026 implies a 22.2% jump from the year-ago level. In the last four quarters, EQH’s earnings beat estimates twice and missed on the other occasions, with an average surprise of negative 2.3%.
The consensus mark for MGIC Investment’s 2025 earnings witnessed one upward estimate revision in the past month against no downward movement. It beat earnings estimates in each of the past four quarters, with an average surprise of 15.9%. Furthermore, the consensus estimate for MGIC Investment’s 2025 revenues implies 2.9% year-over-year growth.
The Zacks Consensus Estimate for Kemper’s 2025 full-year earnings indicates 6.5% year-over-year growth. It beat earnings estimates in each of the past four quarters, with an average surprise of 21.1%. Also, the consensus mark for Kemper’s 2025 revenues implies 7.5% year-over-year growth.
The Zacks Consensus Estimate for Prudential’s current year earnings is pegged at $2.07 per share, indicating 15.6% year-over-year growth. Also, the consensus mark for Prudential’s next year earnings implies a further 16.6% jump.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Equitable Holdings Hikes Dividend by 12.5%, But Yield Trails Industry
Equitable Holdings, Inc. (EQH - Free Report) recently announced that its board of directors approved an increase in quarterly dividends, consistent with its previously disclosed plan. The company will now pay out 27 cents per share, marking a 12.5% increase from the previous amount.
The new dividend will be paid out on June 9, 2025, to stockholders of record as of June 2. Based on the increased rate, the annual dividend amounts to $1.08 per share. The dividend yield, calculated based on the new payout and the closing price on May 21, is 2.1%, which is still lower than the industry average of 2.5%.
Moreover, EQH announced dividends on its preferred stock, including a $328.13 per share quarterly dividend on Series A 5.25% Non-Cumulative Perpetual Preferred Stock, a $618.75 semi-annual dividend on Series B 4.95% Non-Cumulative Perpetual Preferred Stock and a $268.75 per share quarterly dividend on Series C 4.30% Non-Cumulative Perpetual Preferred Stock.
Regarding its financial position, Equitable Holdings exited the first quarter of 2025 with total investments and cash and cash equivalents of almost $127.1 billion, while long-term debt was only $4.3 billion. The company is also improving its cash-generating ability. More than half of its cash flow comes from non-insurance business, providing diversification benefits. In the first quarter of 2025, it came up with $158 million in operating cash flow, improving from $31 million a year ago.
The company's Group Retirement business is expected to benefit from higher fee-based revenues. Its pre-tax earnings of $153 million jumped 5.5% in the first quarter. This positive momentum is likely to support EQH’s capital-deployment initiatives. It has a 60-70% payout ratio target of non-GAAP operating earnings. In the March quarter of 2025, Equitable Holdings paid out $74 million of cash dividends and repurchased $261 million worth of shares.
The Zacks Consensus Estimate for its 2025 bottom line is pegged at $6.63 per share, which suggests an 11.8% year-over-year increase. The same for 2026 implies a 22.2% jump from the year-ago level. In the last four quarters, EQH’s earnings beat estimates twice and missed on the other occasions, with an average surprise of negative 2.3%.
Equitable Holdings, Inc. Price and EPS Surprise
Equitable Holdings, Inc. price-eps-surprise | Equitable Holdings, Inc. Quote
Zacks Rank & Key Picks
Equitable Holdings currently has a Zacks Rank #3 (Hold).
Investors interested in the broader Finance space can look at some better-ranked stocks like MGIC Investment (MTG - Free Report) , Kemper (KMPR - Free Report) and Prudential plc (PUK - Free Report) . While MGIC Investment currently sports a Zacks Rank #1 (Strong Buy), Kemper and Prudential carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for MGIC Investment’s 2025 earnings witnessed one upward estimate revision in the past month against no downward movement. It beat earnings estimates in each of the past four quarters, with an average surprise of 15.9%. Furthermore, the consensus estimate for MGIC Investment’s 2025 revenues implies 2.9% year-over-year growth.
The Zacks Consensus Estimate for Kemper’s 2025 full-year earnings indicates 6.5% year-over-year growth. It beat earnings estimates in each of the past four quarters, with an average surprise of 21.1%. Also, the consensus mark for Kemper’s 2025 revenues implies 7.5% year-over-year growth.
The Zacks Consensus Estimate for Prudential’s current year earnings is pegged at $2.07 per share, indicating 15.6% year-over-year growth. Also, the consensus mark for Prudential’s next year earnings implies a further 16.6% jump.