Dividend Aristocrats In Focus: Brown & Brown, Inc.

Up to date on March 4th, 2026 by Felix Martinez

The Dividend Aristocrats are among the greatest dividend shares an investor will discover. They’re S&P 500 firms with 25+ consecutive years of dividend will increase.

We consider the Dividend Aristocrats are among the many highest-quality dividend progress shares round. Because of this, we created a downloadable spreadsheet of all 69 Dividend Aristocrats, together with vital metrics comparable to price-to-earnings ratios and dividend yields.

You’ll be able to obtain the Excel sheet of all 69 Dividend Aristocrats by clicking the hyperlink beneath:

 

Disclaimer: Certain Dividend will not be affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s primarily based. Not one of the info on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official info.

Every year, we evaluation the entire Dividend Aristocrats. The subsequent inventory within the sequence is an insurance coverage dealer big, Brown & Brown Inc. (BRO). BRO won’t be a well-recognized inventory for many buyers, however it has definitely earned its place on the record.

BRO has now elevated its dividend for 31 consecutive years. This text will talk about the corporate’s enterprise mannequin, progress outlook, and whether or not we view it as a purchase at the moment.

Enterprise Overview

Brown & Brown Inc. is a number one insurance coverage brokerage agency that gives threat administration options to each people and companies, with a concentrate on property & casualty insurance coverage. Brown & Brown has a notably excessive stage of insider possession.

The corporate employs about 17,000 individuals and generated about $5.7 billion in income final yr. It operates by means of 4 segments: Retail, Nationwide Applications, Wholesale Brokerage, and Companies.

The corporate has been diversifying its enterprise segments through the years, permitting it to not be 100% depending on any single phase. Thus, these segments have carried out very effectively relative to their friends, enabling BRO to attain “better of breed” standing in its trade.

Brown & Brown’s aggressive benefit stems from its willingness to execute small, frequent acquisitions. This growth-by-acquisition technique offers the corporate an everlasting alternative to proceed rising its enterprise for the foreseeable future.

Progress Prospects

Brown & Brown has a exceptional progress monitor report, together with a decade-long compound annual earnings progress fee of greater than 14%. The corporate’s guide worth per widespread share has grown at an analogous fee, rising by ~11% per yr over the past 10 years.

The expansion technique is each easy and sustainable. Over time, the corporate has actively acquired smaller insurance coverage brokerage corporations and built-in them into its broader operations.

Brown & Brown posted fourth-quarter and full-year monetary outcomes on January twenty sixth, 2025. The corporate reported robust top-line progress in This fall 2025, with income rising 35.7% to $1.6B, primarily pushed by acquisitions, although natural income declined 2.8%. Web earnings elevated 25.7% to $264M, whereas adjusted diluted EPS rose 8.1% to $0.93.

Nevertheless, reported diluted EPS fell 19.2% to $0.59, reflecting the impression of acquisitions and share dilution. Adjusted EBITDAC elevated 35.6% to $529M, with margins regular at 32.9%.

For full-year 2025, income grew 22.8% to $5.9B, with natural income up 2.8%. Web earnings rose 6.1% to $1.05B, and adjusted diluted EPS elevated 10.9% to $4.26, regardless of reported diluted EPS declining 8.7% to $3.16.

Adjusted EBITDAC climbed 25.6% to $2.1B, and margins improved to 35.9%, reflecting scale advantages from acquisitions, together with the Accession deal.

The corporate considerably expanded its stability sheet following acquisition exercise, with complete property rising to $30.0B from $17.6B in 2024. Working money circulate reached $1.45B, whereas investing money outflows of $7.9B primarily funded acquisitions. Administration highlighted 2025 as a transformational yr marked by robust adjusted earnings progress, margin resilience, and strategic growth.

Supply: Investor Presentation

We begin 2026 with a robust earnings-per-share progress estimate of $4.50, as the corporate continues to see strong income progress, driving increasing margins.

We count on BRO to generate 9% annual earnings-per-share progress over the subsequent 5 years.

Aggressive Benefits & Recession Efficiency

Brown & Brown’s aggressive benefit stems from its willingness to execute small, frequent acquisitions. This growth-by-acquisition technique offers the corporate an everlasting alternative to proceed rising its enterprise for the foreseeable future.

BRO can also be modestly recession-resistant. For instance, BRO’s aggressive benefits permit it to take care of constant profitability every year, even throughout recessions.

BRO’s earnings-per-share in the course of the Nice Recession are beneath:

• 2007 earnings-per-share of $0.68
• 2008 earnings-per-share of $0.59 (13% decline)
• 2009 earnings-per-share of $0.54 (8% decline)
• 2010 earnings-per-share of $0.56 (4% improve)

Additional, in the course of the COVID-19 pandemic, earnings grew from $1.40 per share in 2019 to $1.67 per share in 2020, representing a 19% improve yr over yr.

Supply: Investor Presentation

Valuation & Anticipated Returns

Primarily based on our anticipated 2026 EPS of $4.50, BRO inventory trades at a price-to-earnings ratio of 16x, utilizing at the moment’s inventory worth of ~$72. BRO’s common price-to-earnings ratio was 23 over the previous 10 years.

Right this moment’s a number of is undervalued to our honest P/E of 24x, implying shares seem undervalued at their present worth ranges.

If the inventory’s valuation a number of will increase to our honest P/E of 24.0x, annual shareholder returns would improve by 8.4% over the subsequent 5 years.

Additionally, earnings progress and dividends will positively impression future returns. First, we count on the corporate’s earnings per share to develop by 9% per yr by means of 2031.

The inventory additionally has a dividend yield of 0.9%. Placing all of it collectively, a breakdown of our anticipated future returns is as follows:

• 9.0% anticipated earnings-per-share progress
• 0.9% dividend yield
• 8.4% a number of expassion

On this projection, complete annualized shareholder returns might attain 18.3% by means of 2031. This can be a good anticipated fee of return for this firm.

Last Ideas

BRO has endured quite a few challenges over the previous decade, together with the Nice Recession of 2008-2009 and the coronavirus pandemic of 2020. And but, it continued to boost its dividend every year. Only a few firms have this skill, making it a uncommon dividend progress inventory.

BRO has a management place within the insurance coverage trade and sturdy aggressive benefits. These components have positioned the corporate for progress in future years, making it extremely doubtless that the corporate will proceed to extend its dividend.

The corporate is a high-quality enterprise and a dividend progress firm. Whereas the inventory is undervalued, its low a number of helps it earn a purchase ranking from Certain Dividend right now. Accordingly, we now have assigned the inventory a purchase ranking at its present worth.

Moreover, the next Certain Dividend databases include essentially the most dependable dividend growers in our funding universe:

Should you’re searching for shares with distinctive dividend traits, take into account the next Certain Dividend databases:

The most important home inventory market indices are one other strong useful resource for locating funding concepts. Certain Dividend compiles the next inventory market databases and updates them month-to-month: