Humana dividend: payment, cash coverage and yield
Humana pays $3.54 per share, matching the declared $0.885 quarterly payment and flat 2026 dividend guidance. Cash coverage is not presented as a simple ratio: operating cash flow fell to $921 million in 2025 from $2,966 million in 2024, while the cash-allocation table separates dividends, buybacks and what was kept.
How much does Humana pay per share?
The base dividend stays at $3.54 per share throughout, matching the declared $0.885 quarterly payment and flat 2026 dividend guidance. The bear case falls to $1.77 by 2029 because capital pressure persists. The bull case rises to $3.90 as earnings recover. The three-year dividend history at $3.54 supports the base case, but debt-to-capitalization was above the long-term target and future payments remain discretionary.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 9.84 | 9.98 | 20.00 | 22.08 | 22.67 |
| − Dividends, per share | 3.53 | 3.53 | 3.52 | 3.13 | 2.78 |
| − Share buybacks, per share | 0.83 | 6.21 | 12.05 | 15.74 | 0.00 |
| = Kept, per share | 5.48 | 0.25 | 4.43 | 3.21 | 19.88 |
What this means. Share buybacks are not cash paid to every shareholder, so subtracting them here shows money used to reduce the share count, not money each share received.
Does Humana’s dividend come from cash?
Operating cash flow fell to $921 million in 2025 from $2,966 million in 2024. Humana attributed much of the decline to timing, including government subsidy receivables and other working-capital movements. “Other assets” used $2,173 million, while pharmaceutical rebates receivable stood at $1.9 billion at year-end. Revenue can therefore be earned before the cash arrives.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 1,188 | 1,207 | 2,489 | 2,806 | 2,933 |
| = Earnings for common shareholders | 1,188 | 1,207 | 2,489 | 2,806 | 2,933 |
| − Dividends declared on common shares | 426 | 427 | 438 | 398 | 360 |
| − Share buybacks | 100 | 750 | 1,500 | 2,000 | 0 |
| = Kept to grow and build capital | 662 | 30 | 551 | 408 | 2,573 |
| Paid out, % of earnings for common | 44.3% | 97.5% | 77.9% | 85.5% | 12.3% |
What could change Humana’s dividend?
The view would move toward the bear case if the insurance benefit ratio stays elevated during 2027–2029, or if plan exits and weaker retention prevent revenue growth from becoming profit. It would also weaken if 2027 ratings produce bonus revenue but not retained earnings in 2028 and 2029.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,074 (1,086 / 2,509) | 2,775 (1,392 / 3,496) | 3,299 (1,629 / 4,116) |
| Shares (millions) | 120 (121 / 119) | 119 (121 / 118) | 119 (121 / 116) |
| Dividends per share | 3.54 (3.54 / 3.54) | 3.54 (2.65 / 3.72) | 3.54 (1.77 / 3.90) |
| Price to earnings | 23.00 (18.00 / 27.00) | 22.00 (16.00 / 28.00) | 21.00 (15.00 / 28.00) |
What is Humana’s dividend yield today?
Premiums grew 9.6% in 2025 while operating return on equity fell to 7.0%. The consolidated benefit ratio rose from 86.3% in 2022 to 90.2% in 2025; $1.0 billion of favorable prior-year claims development reduced 2025 claims expense. Valuation is 39.1x trailing P/E beside 24.4x forward P/E, with 2.6x price-to-book and a 0.9% dividend yield. Goodwill and other long-lived assets equal 74% of equity. Dividends per share were nearly flat across the five years shown, while buybacks varied sharply.