Equitable: The Quiet Compounder Powering Wealth and Retirement

This new buy for our portfolio just raised its dividend by 12.5%

One of the most satisfying moments in dividend investing is when the thesis plays out exactly as expected. This week, one of our recent additions to the Dividend Hike Portfolio announced a 12.5% dividend increase—right on cue.

While this may have surprised some investors, we saw it coming. Why? Because we’ve been tracking this company’s remarkably consistent history of annual double-digit hikes—something few in the market seem to have noticed.

In this post, we will break down the business behind the numbers: its 160-year legacy, its unique dual-engine model, and why its combination of insurance stability and asset management growth makes it a standout. Most importantly, I’ll show you why this company may quietly be one of the best-kept secrets in dividend growth investing.

The company that we are talking about is Equitable Holdings EQH 0.00%↑ , one of the 7 stocks we added recently to the dividend hike portfolio. The good thing is that we expected a double digit dividend hike in 2025, that was delivered just a couple of days ago.

Equitable Holdings, Inc. is a leading financial services holding company in the United States, known for its deep roots in life insurance, retirement solutions, and investment management. With a history that dates back over 160 years, Equitable has evolved from a traditional life insurance provider into a modern, diversified financial organization.

A Brief History

Equitable was originally founded in 1859 as The Equitable Life Assurance Society of the United States. For much of its early history, it was one of the dominant players in the American life insurance market. In the late 20th century, the company expanded its offerings and adapted to the evolving financial landscape.

• For more on the company’s history check https://equitable.com/about-equitable

• Or learn more on the Equitable Holdings Investor Relations page: https://ir.equitableholdings.com/investor-home/default.aspx

• Or check out the company’s Dividend History: https://ir.equitableholdings.com/stock-information/dividends/default.aspx

In 1992, Equitable became a part of AXA Group, one of the world's largest insurance companies, and operated as AXA Equitable. However, in 2018, AXA began divesting its U.S. operations, leading to Equitable’s reemergence as an independent, publicly traded company under the name Equitable Holdings. The IPO marked a new chapter in its long-standing legacy of financial stewardship.

Business Overview

Equitable Holdings, Inc. is a financial services holding company comprised of complementary and well-established businesses, Equitable, AllianceBernstein and Equitable Advisors. Equitable Holdings has $1.0 trillion in assets under management and administration (as of 12/31/2024) and more than 5 million client relationships globally. Founded in 1859, Equitable provides retirement and protection strategies to individuals, families and small businesses. AllianceBernstein is a global investment management firm that offers diversified investment services to institutional investors, individuals and private wealth clients. Equitable Advisors, LLC (Equitable Financial Advisors in MI and TN) has 4,600 duly registered and licensed financial professionals that provide financial planning, wealth management, retirement planning, protection and risk management services to clients across the country.

Today, Equitable Holdings operates through two main subsidiaries:

• Equitable: Offers life insurance, annuities, and retirement planning solutions tailored to individuals, institutions, and financial professionals. It is known for helping clients build and protect wealth, particularly during retirement.

• AllianceBernstein (AB): A majority-owned asset management firm serving institutional investors, high-net-worth individuals, and retail investors globally. AB manages a wide range of investment strategies across equities, fixed income, alternatives, and multi-asset solutions.

This dual-engine model gives Equitable a balanced revenue stream—combining predictable insurance income with growth-driven investment management.

Industry and Sector

Equitable operates within the broader financial services sector, specifically under the sub-sectors of insurance and asset management. This space is characterized by long-term contracts, regulatory oversight, and a growing demand for retirement planning as demographics shift toward an aging population in the U.S.

Given increasing life expectancies and a shift away from employer-sponsored pensions, Equitable is well-positioned to capitalize on growing demand for personalized retirement solutions and wealth protection products.

Competitive Landscape

In the life insurance and annuities space, Equitable faces competition from companies like:

• MetLife MET 0.00%↑

• Prudential Financial PRU 0.00%↑

• Lincoln Financial Group LNC 0.00%↑

• Principal Financial Group PFG 0.00%↑

In the asset management space, AllianceBernstein competes with:

• BlackRock BK 0.00%↑

• Fidelity Investments

• T. Rowe Price TROW 0.00%↑ (A Dividend Aristocrat with 39 consecutive years of increases, but with mini hikes of 2.4%, 1.6% and 1.7% in the last three years)

• Invesco IVZ 0.00%↑

While Equitable may not be the largest player in either segment, its integrated model and strong distribution relationships give it a competitive advantage in serving clients holistically.

Fundamentals and Dividends

A glance at Equitable’s fundamentals reveals that the stock is trading at an estimated forward P/E ratio of 7.8 for fiscal year 2025. Analysts are forecasting revenue of $15.6 billion for 2025—an increase of nearly 26% compared to 2024. Moreover, earnings per share (EPS) are expected to grow significantly over the next few years, rising from $3.78 in 2024 to $5.53 in 2025, and projected to surpass $10 per share by 2028.

Among the 13 analysts covering the stock, sentiment is predominantly positive: there are currently 2 strong buy ratings, 8 buys, and 3 holds—no sell ratings.

As dividend investors, we’re especially focused on the company’s track record of shareholder returns—and Equitable continues to stand out. While strong historical performance never guarantees future results, the consistency is hard to ignore. Just two days ago, on May 21, Equitable announced a 12.5% dividend increase to $0.27 per quarter. This is slightly above our own expectations; last year’s increase was 9.1%, and this 2025 raise marks the largest in five years. Over the past five years, Equitable has increased its dividend by an average of 9.7% annually, and since initiating its dividend in 2018, it has delivered seven consecutive annual increases.

Looking ahead, analysts expect the dividend to continue growing in line with earnings. By 2028, the average forecast calls for a dividend of $1.40 per share—more than 32% above the new payout announced this week.

But there’s more to like here. One of the most compelling aspects of Equitable’s capital allocation strategy is its aggressive share repurchase program. Since 2020, the company has bought back an average of 7.5% of its outstanding shares per year—a remarkable pace. At the end of 2021, Equitable had 417 million shares outstanding; by the end of 2024, that number had dropped to just 325 million. Analysts expect buybacks to remain strong in the coming years.

Taken together—consistent dividend growth, accelerating earnings, and substantial buybacks—we remain highly impressed by Equitable’s shareholder return strategy. The stock still offers a solid yield of 2.1%, trades near all-time highs, and based on everything above, it’s easy to see why.

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.