Based on our calculations, looks like Allstate insurance is currently on sale. It’s not a huge sale, but it’s a sale. How do we determine that? By looking at the average PE ratio and the average dividend yield and comparing today’s – and looking for value. And that’s how we came up with Allstate!
Allstate Corp (ALL) is a Financial Services and Insurance stock. It’s ‘Fully Certified,’ passing ALL Dividend System criteria. It also enjoys ‘Premier’ status being in the upper percentiles of this month’s stock universe. ALL has been delivering increasing dividends for 10 years, making it a member of the a member of the Dividend Nobility. We consider ALL to be a Growth and Income stock.
GROWTH: ALL’s 5-year average dividend growth rate is 13.1%, versus 10.2% for this month’s dividend universe, making it slightly above the average. ALL’s current dividend yield is 2.28%, slightly below the average. The average yield is 2.53%.
SAFETY is having enough cash to pay and increase the dividend. The best way to measure that is through cash flow. ALL’s free cash flow (FCF) has grown at an average rate of 16.7% per year for the last 10 years versus of our dividend universe of 7.6%, so Allstate Corp is performing very well, but is it sustainable?
ALL’s reliability rating is 3.5 out of 5, (compared to the average of 3.1) and a Quality Rating of 3.8 (out of 5), vs. the average of 3.1. Right now, the Dividend Yield and Price/Earnings Ratio indicate that ALL has ‘Good Buy Signal’
Overall, based on our Dividend System™ comparative rankings, we rate Allstate Corp an ‘A+.’