- Essent Group maintains a 2 percent forward yield supported by strong free cash flow
- Dividend reinvestment helped lift total shareholder return to 76 percent over three years
- Earnings softness contrasts with steady dividend growth and discounted valuation
Dividend Snapshot and Upcoming Payout
Essent Group continues to attract investors focused on ESNT dividends and steady income. Its quarterly payout remains 0.31 dollars per share, or 1.24 dollars annually, offering a forward yield of roughly 2 percent at a share price near 62.76 dollars.
The next ex dividend date is scheduled for 1 December, with payment on 10 December. This maintains Essent’s consistent quarterly dividend rhythm.
The company has posted a five year dividend growth rate near 2.6 percent annually, with a slight acceleration over the past year. Supported by a low payout ratio, a 9 times earnings multiple, and strong free cash flow coverage, the dividend remains well protected.
Stock Performance and Dividend Contribution
Essent’s total return profile looks more compelling than its share price alone. Over the past three years, *shares rising 65 percent* shares have risen 65%, and dividend reinvestment has helped lift cumulative returns to 76 percent.
Despite this solid performance, fundamentals present a mixed picture. Earnings have softened, with *EPS declining about 3 percent per year* EPS has actually declined about 3% per year, while top line performance has remained robust with *revenue growing at roughly 10 percent annually* revenue has grown at roughly 10% annually.
Even with these gains, Essent has lagged broader markets recently, posting *an 11 percent return over the last year* stock returned 11% over the last year. For dividend focused investors, this relative underperformance may create a more attractive entry point, particularly given Essent’s valuation and reliable payout.
Why Dividend Investors Are Watching Essent
Essent’s mortgage insurance business typically generates dependable cash flows in stable economic environments. Free cash flow per share of 8.83 dollars comfortably exceeds its annual dividend obligation, offering meaningful safety for current ESNT dividends.
With a price to book ratio near 1.07 and a 9 times earnings multiple, Essent trades at a discount to several specialty financial peers. For long term income investors, this combination of low valuation, a safe dividend, and measured growth supports a favorable setup for compounding through dividend reinvestment.
Risks still warrant monitoring. Earnings pressure, margin fluctuations, or higher loss ratios could weigh on future dividend increases. The summary also notes two internal warning signs, including one potentially material factor tied to credit conditions.
Outlook for Income Focused Investors
Essent may not rank among the fastest growing income stocks, but its consistent dividends, conservative balance sheet, and discounted valuation keep it firmly on the radar for yield seekers.
Dividend strength continues to support overall returns, with total shareholder return reaching 76 percent dividends have meaningfully boosted total shareholder return to 76% even during a period of declining earnings.
For investors seeking defensive income and potential upside tied to future revenue gains, Essent’s current setup remains compelling ahead of the December dividend cycle.
