One Year On: Is Intact Financial Still Worth Buying for its Dividend?

Intact has created significant value as a consolidator, with industry-leading performance to drive continued value creation.

Karen Thomas, MSc, CFA

Karen is a stock market enthusiast focused on uncovering those stocks that she believes the market has mispriced. She does this through fundamental and quantitative analysis of companies and their industries, as well as a study of future opportunities and trends. She holds a Masters degree in Finance, the CFA designation, and has over 20 years of experience in the investment management industry. Having worked at a major pension fund, as well as two leading mutual fund firms as an analyst and portfolio manager, she has solid investing expertise which she aims to share with her readers.

Published April 14, 8:15 pm EDT

| More on: IFC

Key Points

• Intact Financial Corp. (TSX:IFC) has delivered 21 consecutive years of dividend growth since its 2004 IPO, with dividends growing at a 10% CAGR over the past decade to reach $5.88 per share.
• The company's strong performance is backed by excellent fundamentals including nearly 20% ROE, 46% EPS growth in Q4 2025, and a successful acquisition strategy that has driven 12% CAGR in net operating income per share.
• Currently yielding 2.31% with earnings beating expectations by 20% in 2025, Intact's scale advantages in claims data and supplier relationships position it well for continued dividend growth and market expansion.

Intact Financial Corp. (TSX:IFC) is the largest provider of property and casualty (P&C) insurance in Canada and a leading international provider. The company has a history of excellence and growth that has been accompanied by strong bottom line results. Not surprisingly, Intact stock has provided its shareholders with exceptional and reliable dividend growth.

So, let’s look into whether Intact Financial Corporation is worth buying for its dividend.

worry concern — Image source: Getty Images

Intact Financial – A strong dividend history

Since Intact stock’s IPO back in 2004, the company has posted 21 consecutive years of dividend growth. Similarly, in the last 10 years, Intact’s annual dividend per share has grown at a compound annual growth rate, or CAGR, of 10% to the current $5.88.

Also, in the last 10 years, Intact stock has provided a 15% 10-year annualized total shareholder return, outpacing the TSX. This was made possible due to Intact’s strong growth strategy, which has driven a 12% CAGR in its net operating income per share (NOIPS) to the current $19.21.

This growth strategy has been underpinned by a successful acquisition strategy that aims to consolidate the P&C insurance market, which remains highly fragmented at this time. This, along with organic growth efforts, has driven strong top-line growth.

As you can see from Intact Financial’s stock price graph above, the company’s success has rewarded its shareholders in the long run.

Earnings performance

In the last many quarters, Intact stock has handily beat expectations. In fact, for 2025, earnings per share (EPS) of $19.20 beat expectations by almost 20%. This was driven by strong and improving margins, higher operating income and lower-than-expected catastrophe losses over the last 12 months.

Intact will report its first quarter 2026 earnings on May 1^st. Analysts are expecting EPS of $4.08 compared to $4.01 in the same period in the prior year.

Looking ahead

Intact stock’s dividend is currently providing a dividend yield of 2.3%. This yield is a respectable one, and it’s backed up and supported by some really strong fundamentals. For example, Intact has consistently generated the highest return on equity (ROE) in the business. In the fourth quarter of 2025, Intact Financial stock’s ROE was almost 20%, and was accompanied by a strong 46% increase in its EPS to $5.24.

Looking ahead, Intact continues to have a number of competitive advantages that it will likely continue to benefit from. For example, its size and scale give the company access to a vast number of claims information that is used to accurately identify trends, more accurately model risk, and help with pricing of its various products. Intact also benefits from this in the claims and rebuilding process. Intact has priority service, lower material costs, and preferred terms with suppliers.

The bottom line

It is true that the P&C industry can be unpredictable, as natural catastrophes are impossible to predict and quite expensive. However, Intact has shown the ability to manage this extremely well over the long term, creating significant shareholder value and, of course, a reliable and growing dividend.

So, in closing, I would definitely buy Intact Financial Corporation stock for its dividend. I would also buy it for its strong growth prospects in existing and new verticals and markets, which are likely to drive Intact’s stock price even higher over the long run.