Covered, compounding. A 2.03% yield on a 25.8% trailing payout is covered with room to spare: $1.56 a quarter, raised in early 2026 from $1.51 and paid September 23, 2026, extending 5 years of increases. The payout leaves most earnings retained, so the dividend is funded by current profit with a wide cushion.
Key risk: Health-services margins — Evernorth and Cigna Healthcare earnings fund a low 25.8% payout, so a sustained margin squeeze, not the current rate, is the tripwire.
Changes if: Trailing payout climbs well above 25.8%, or the annual raise stops.
- ✓Payout-coverage check: 25.8% of trailing earnings — a wide cushion; most earnings stay retained.
- ✓Yield check: 2.03% indicated — $1.56/qtr × 4 at the $306.95 close on Oct. 23, 2026. Real, earned cash dividend, not return of capital.
- ✓Dividend growth check: 5 years of increases; the latest raise, to $1.56 from $1.51, was paid Sep. 23, 2026.
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.