Cigna Group Hits 2% Dividend Yield: Analyzing Investment Potential
A Closer Look at Cigna’s Financials
On Friday, shares of The Cigna Group (Symbol: CI) traded with a dividend yield exceeding 2%, based on a quarterly dividend of $5.6. The stock was available for as low as $279.88 during the trading session. Dividends play a critical role for investors, as they have historically accounted for a significant portion of the stock market’s total returns.
To provide context, imagine you purchased shares of the S&P 500 ETF (SPY) on December 31, 1999, at a price of $146.88 per share. Fast forward to December 31, 2012, and those same shares were valued at $142.41, resulting in a loss of $4.67 per share over those years. However, during that same timeframe, investors collected $25.98 per share in dividends, leading to a total positive return of 23.36%. While reinvesting dividends would yield an average annual total return of about 1.6%, Cigna’s yield above 2% seems particularly appealing if it can be maintained. As a member of the S&P 500, The Cigna Group holds a notable position among large-cap companies within the index.
Understanding Cigna’s Dividend History
Dividend payouts can vary and typically reflect the profitability trends of each company. To assess the sustainability of Cigna’s recent dividend increase, analyzing the historical dividend chart for CI below may provide valuable insights into the likelihood of maintaining a 2% annual yield:
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The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
