Progressive dividend: payout, coverage and yield
Progressive's regular dividend is $0.10 per share each quarter, and its separate annual-variable dividend is $13.50. Progressive's earnings and capital covered distributions from 2021 through 2025, with capital also retained after dividends and buybacks.
How much does Progressive pay its shareholders over time?
The regular dividend is $0.10 per share each quarter. The $13.50 annual-variable dividend was a separate capital distribution, not a new recurring promise. The tables show the valuation measures and operating inputs behind this first assessment.
Dividends are deliberately volatile. The bear case pays only the regular $0.40 annual dividend because the variable payment is discretionary. The base pays $4.90 in the first window and $3.40 thereafter, below the exceptional $13.90 paid in 2025. The bull repeats that large first payment and then pays $8.40. Progressive has paid variable dividends in four of the last five years, but its policy only requires the board to consider one annually.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 19.23 | 14.40 | 6.58 | 1.18 | 5.66 |
| − Dividends, per share | 13.85 | 4.88 | 1.15 | 0.40 | 1.89 |
| − Share buybacks, per share | 0.28 | 0.23 | 0.24 | 0.17 | 0.38 |
| = Kept, per share | 5.09 | 9.29 | 5.19 | 0.62 | 3.39 |
Does Progressive's dividend coverage leave cash for buybacks and growth?
From 2021 through 2025, Progressive earned approximately $27.7 billion for common shareholders. It declared approximately $13.0 billion in common dividends. It repurchased $763 million of shares and retained approximately $13.9 billion. Retained earnings are not a separate cash account: they strengthen the capital cushion needed to pay future claims and support additional policies.
Free cash flow, current ratio, enterprise value and EBITDA do not fit insurance economics neatly. Reserve adequacy, statutory capital, liquidity and underwriting margins say more. Diluted shares changed little, so the rise in diluted earnings per share came overwhelmingly from stronger earnings rather than a shrinking share count.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| = Earnings for common shareholders | 11,308 | 8,463 | 3,865 | 695 | 3,324.0 |
| − Dividends declared on common shares | 8,146 | 2,869 | 673 | 234 | 1,109.0 |
| − Share buybacks | 166 | 134 | 141 | 99 | 223.0 |
| = Kept to grow and build capital | 2,996 | 5,460 | 3,051 | 362 | 1,992.0 |
| Paid out, % of earnings for common | 73.5% | 35.5% | 21.1% | 47.9% | 40.1% |
What this means. The paid-out percentage includes both dividends and share buybacks, so it is higher than the dividend percentage alone.
What could change Progressive's dividend?
The dividend policy adjusted to conditions. In 2022, common earnings fell to $695 million, so the board omitted the annual-variable dividend. Progressive also used debt temporarily, later repaid debt, and redeemed preferred shares in 2024. Those choices show a capital policy that responds to stress rather than promising a steadily rising payout.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 9,963 (6,348 / 11,864) | 9,971 (6,225 / 13,211) | 10,090 (6,447 / 13,864) |
| Shares (millions) | 578 (580 / 576) | 578 (580 / 572) | 576 (581 / 568) |
| Dividends per share | 4.90 (0.40 / 13.90) | 3.40 (0.40 / 8.40) | 3.40 (0.40 / 8.40) |
| Price to earnings | 10.50 (7.50 / 13.00) | 10.50 (7.00 / 14.00) | 10.00 (7.00 / 14.00) |