Why Equitable Holdings, Inc. (EQH) is a Great Dividend Stock Right Now

Equitable Holdings (EQH) is highlighted as a compelling dividend stock, currently yielding 2.04% compared to the Insurance - Multi line industry's 1.84% and the S&P 500's 1.59%. The company's annualized dividend of $1.08 is up 14.9% year-over-year, with a 5-year average annual increase of 8.95%; its payout ratio is 16%. With expected earnings growth of 10.46% to $6.55 per share in 2025, EQH is positioned as a potentially strong dividend play, further supported by its Zacks Rank of 3 (Hold).

Analysis

Equitable Holdings, Inc. (EQH) presents a notable profile for dividend-focused investors, evidenced by a stock price appreciation of 12.08% since the start of the year. The company offers a current dividend yield of 2.04%, which is favorable when compared to the Insurance - Multi line industry average of 1.84% and the S&P 500's yield of 1.59%. EQH has demonstrated robust dividend growth, with its current annualized dividend of $1.08 per share marking a 14.9% increase from the prior year. Over the last five years, the dividend has been increased five times, resulting in an average annual growth rate of 8.95%. A key indicator of dividend sustainability is the payout ratio, which for EQH stands at a conservative 16% of its trailing 12-month earnings per share. This low ratio suggests significant capacity for future dividend payments and potential increases, particularly as the company is projected to expand earnings. The Zacks Consensus Estimate for 2025 forecasts earnings per share of $6.55, representing a year-over-year growth rate of 10.46%. Despite these strong dividend metrics and positive earnings outlook, EQH currently holds a Zacks Rank of 3 (Hold), indicating a neutral short-term stance from this specific rating agency.

Key Decisions for Investors

• Investors focused on income generation should consider Equitable Holdings due to its consistent dividend growth, current yield of 2.04% which surpasses industry and market benchmarks, and a significant 14.9% year-over-year increase in its annualized dividend.
• The company's low dividend payout ratio of 16% indicates strong dividend coverage and substantial potential for future dividend increases, contingent upon achieving the forecasted 10.46% earnings growth in 2025.
• While EQH's dividend characteristics are compelling, the Zacks Rank of 3 (Hold) suggests investors should monitor upcoming earnings reports to validate growth projections and consider the broader interest rate environment, as high-yielding stocks can face pressure during periods of rising rates.