Covered, compounding — income-light. A 1.71% yield on an 8.6% trailing payout is very comfortably covered: $1.08 a quarter, raised in February 2026 from $1.00, with most earnings retained. The income is small because Allstate keeps the payout low, not because it cannot afford more.
Key risk: Catastrophe losses — auto and homeowners claims after severe weather are the swing factor; a bad storm season hits earnings first, and the low payout is what absorbs it.
Changes if: The trailing payout climbs past 30%, or the annual raise pattern breaks. The low payout is the cushion here; losing it changes the grade.
- ✓Payout-coverage check: 8.6% of trailing earnings — $4.32 a year against earnings that cover it more than ten times over. One of the widest cushions on the site.
- ✓Yield check: 1.71% indicated — $1.08/qtr × 4 at the $253.19 close on Oct. 23, 2026. Real, earned yield; the quarterly rate was paid Oct. 1, 2026.
- ✓Dividend growth check: Raised in February 2026 from $1.00 to $1.08, continuing a raise streak of 15 consecutive years.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.