Cincinnati Financial Keeps the Dividend Tap Flowing Despite Stormy Profits!

Cincinnati Financial Corporation (CINF) just pulled off a move that separates the true dividend champions from the pretenders: raising its payout by 7% to $0.87 per share for Q1 2025, even after reporting a $90 million net loss. This isn’t just a win for income investors—it’s a testament to the company’s ironclad commitment to shareholder returns. Let’s break down why this insurance giant deserves a closer look.

The Dividend Machine Keeps Chugging

CINF has increased its dividend for 26 straight years, a streak that puts it in rarefied air with companies like Procter & Gamble or Coca-Cola. This isn’t luck—it’s strategy. Even as catastrophic wildfires and storms hammered its Q1 results, the board doubled down on the dividend, proving that capital discipline isn’t optional when you’re a dividend stalwart.

The numbers tell the story:
- Q1 2025 Dividend: $0.87/share (up from $0.81 in 2024)
- Yield: 2.34% at current prices, a solid rate for a stable insurer.
- Payout Ratio: Just 15.67%, meaning dividends are easily covered by earnings over time.

Why They Can Afford the Raise (Even With Losses)

Here’s the kicker: CINF’s Q1 net loss was due to one-time hits like $263 million in catastrophe losses and weak investment returns. But the company’s core business—writing insurance policies—is humming. Its book value per share (a key metric for insurers) stood at $87.78 at the end of March, down just slightly from year-end 2024 despite the dividend.

The company also holds over $5 billion in cash and liquid assets at the parent level, acting as a financial cushion. This isn’t a company on the ropes—it’s positioning for the long game.

The Ex-Dividend Date: When to Act

While the official ex-dividend date for the April 15 payout hasn’t been announced, we can guesstimate based on past patterns. CINF typically sets the ex-date about two weeks before the payment date. For example, the October 2024 dividend had an ex-date of September 17—so April 15’s ex-date is likely around March 21, 2025.

The Bottom Line: A Dividend Darling Worth Buying

Cincinnati Financial isn’t just a dividend stock—it’s a dividend powerhouse with a track record that outperforms most of its peers. Even in a quarter where Mother Nature dealt a brutal hand, the company prioritized shareholders over short-term pain.

Here’s why to add it to your watchlist:
1. Safety First: A 15.67% payout ratio means dividends aren’t at risk, even in tough years.
2. Growth in a Box: The 7% raise shows the board isn’t resting on its laurels.
3. Stability Pays: Insurers like CINF often thrive when volatility hits other sectors.

If you’re looking for a stock that combines income security with capital preservation, CINF is a no-brainer. Just don’t wait too long—this one won’t stay cheap for long.

Final Call: Buy CINF now for the dividend, but hold it forever for the resilience.

Disclosure: The author holds no position in CINF at the time of writing.