Brown & Brown Raises Dividend 9.1%, Extends Growth Streak

Brown & Brown raised its quarterly dividend 9.1% to $0.18 per share from $0.165. The stock trades ex-dividend on November 4, 2026, and the payment is due November 11, 2026.

Why the dividend changed

The insurance broker’s board declared the increase without giving a specific reason for its size. The timing is consistent with Brown & Brown’s established policy of increasing the dividend while retaining most earnings for acquisitions, debt service and internal investment. The declaration represents a higher cash payment, not an adjustment related to a stock split, merger or spinoff. Brown & Brown’s dividend announcement confirms the board action and payment schedule.

The latest operating results provide the immediate context. Third-quarter revenue increased 7.4% to $1.7 billion, while organic revenue grew 1.2%. Adjusted EBITDAC increased 1.7% to $597 million, although the adjusted margin fell to 34.6% from 36.6%. Adjusted diluted earnings per share increased 1.9% to $1.07. Brown & Brown’s third-quarter results show a business still expanding, but with slower underlying growth and margin pressure.

Chief Executive J. Powell Brown said the company continued to win customers despite a challenging insurance-rate environment. He also said Accession, acquired more than a year earlier, added approximately 5,000 employees and broadened the company’s capabilities. Accession is important business context, but Brown & Brown did not attribute the dividend increase directly to the transaction.

Cash generation also remained positive. Net cash provided by operations increased to $1.14 billion for the first nine months of 2026 from $1.01 billion a year earlier. Brown & Brown ended September with $1.10 billion of cash and cash equivalents and $7.35 billion of long-term debt. The company also spent $750 million on treasury stock during the period, showing that the dividend is one part of a broader capital-return and acquisition-financing framework. These figures appear in the company’s third-quarter SEC exhibit.

Dividend track record

The new rate follows four consecutive quarterly payments of $0.165, beginning with the November 5, 2025, ex-dividend date. Those payments followed four quarters at $0.15. The pattern is an annual step-up rather than a series of small increases during the year.

Full-year distributions rose from $0.35 per share in 2020 to $0.38 in 2021, $0.42 in 2022, $0.48 in 2023, $0.54 in 2024 and $0.62 in 2025. The annual increases accelerated from 9.8% in 2021 to 13.9% in 2025. Dividend growth has averaged 12.0% annually over five years.

Brown & Brown calls the latest action its 33rd consecutive annual dividend increase, one year longer than the completed streak reflected before this declaration. The record demonstrates consistency, although the current income generated by the shares remains modest because the yield is low.

Is the dividend covered?

The dividend consumes 20% of earnings. That leaves most reported profit inside the company for acquisitions, integration spending, debt reduction, repurchases and other corporate needs.

SmarterDividends rates the dividend A, with a safety score of 94. That falls in the very safe range of 80-100. The grade reflects wide earnings coverage and a long record of annual increases. It does not mean the payment is guaranteed, but it indicates that the current obligation is small relative to earnings.

Yield and valuation

Brown & Brown’s forward yield is 0.93%, well below the Financial Services sector median of 5.84%. The gap means the shares provide substantially less current income than the typical company in the sector, even after the increase. At the annual dividend of $0.66, an investor holding 100 shares receives $66.00 in annual income.

The shares are priced at $71.08. SmarterDividends estimates fair value at $71.48 and assigns a fair valuation verdict, with 2% downside. The valuation assessment and low yield frame Brown & Brown primarily as a dividend-growth record rather than a high-current-income stock.

What to watch

The first checkpoints are the November 4, 2026, ex-dividend date and the November 11, 2026, payment date. After that, investors can monitor whether quarterly payments remain at $0.18 and how the rate translates into future full-year distributions.

Operating performance will determine how much flexibility the board retains. Relevant measures include organic revenue growth, adjusted margins, operating cash generation and debt following the Accession acquisition. Brown & Brown’s next earnings update also will show whether the challenging insurance-rate environment identified by management persists and whether integration of Accession continues to broaden the company’s revenue base.