BHF - Unum Group: Slowing Dividend Growth

• A major attraction of UNM is its dividend yield of more than 4% and its undervalued price multiples; however, this relative attraction is at risk given high inflation.
• Also, while UNM pays out its dividends consistently on a quarterly basis, the growth rate of dividends is declining.
• Good risk management, with a conservative portfolio and limited exposure to cyclical consumer segments; risk-based capital ratio improved sequentially over the last quarter.
• However, portfolio value faces some risk due to the rising yield curve. Furthermore, UNM’s stagnating revenue growth limits future cash inflows for higher yield investments.

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