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

Equitable Holdings (EQH) presents a compelling dividend opportunity with a current yield of 2.04%, exceeding both the insurance industry (1.84%) and the S&P 500 (1.59%). The company's annualized dividend of $1.08 represents a 14.9% increase from last year, with an average annual increase of 8.95% over the past 5 years and a low payout ratio of 16%, suggesting room for future growth. Furthermore, EQH anticipates earnings growth of 10.46% in 2025, making it an attractive option for income-focused investors.

Analysis

Equitable Holdings (EQH) presents a notable profile for income-focused investors, with its stock having appreciated 12.08% year-to-date. The company offers a current dividend of $0.27 per share, translating to a dividend yield of 2.04%, which surpasses both the Insurance - Multi line industry average of 1.84% and the S&P 500's yield of 1.59%. Demonstrating robust dividend growth, EQH's current annualized dividend of $1.08 reflects a significant 14.9% increase from the previous year, and the company has consistently raised its dividend five times over the past five years, resulting in an average annual increase of 8.95%. This history of increasing shareholder returns is underpinned by a conservative payout ratio of 16% of its trailing 12-month earnings per share, suggesting substantial capacity for future dividend expansion. Further bolstering this outlook, EQH is anticipated to experience earnings growth in the upcoming fiscal year, with the Zacks Consensus Estimate for 2025 standing at $6.55 per share, which would represent a year-over-year earnings growth rate of 10.46%. Despite these strong fundamentals and dividend characteristics, the stock currently maintains a Zacks Rank of 3 (Hold).

Key Decisions for Investors

• Investors seeking income should evaluate EQH for its current dividend yield of 2.04%, which exceeds industry and S&P 500 averages, and its strong dividend growth track record, including a 14.9% recent annual increase and an 8.95% five-year average annual growth.
• The low payout ratio of 16% and projected earnings per share growth of 10.46% for 2025 suggest continued dividend sustainability and growth potential, although the current Zacks Rank of 3 (Hold) warrants consideration for overall investment strategy.
• Be mindful of the general caution that high-yielding stocks can face headwinds during periods of rising interest rates, a factor to consider when assessing EQH's attractiveness as an income investment.