A Fresh Look at Cigna (CI) Valuation Following New $1.51 Dividend Announcement

Cigna Group (CI) has drawn increased attention after its Board declared a quarterly cash dividend of $1.51 per share. The dividend is set to be paid on December 18, 2025, for shareholders of record as of December 4. This announcement is a meaningful development for income-focused investors, especially as key dates approach.

See our latest analysis for Cigna Group.

Over the past year, Cigna Group’s share price return has gained 9.9% year-to-date but trails with a 1-year total shareholder return of -2.9%, pointing to solid recent momentum after a slower stretch for long-term holders. The company’s dividend news arrives alongside a scheduled Board retirement and follows strategic shifts, including the sale of its Medicare Advantage business. These moves together have sparked renewed interest and signaled potential for evolving growth or risk over the coming quarters.

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With shares still trading about 21% below the consensus analyst price target, investors must now consider whether Cigna is undervalued given its strategic changes or if the market has already priced in expectations for future growth.

Most Popular Narrative: 18.2% Undervalued

Cigna Group’s most followed valuation narrative claims the stock has more upside left, citing a future fair value well above its latest closing price of $301.78. This perspective expects a continued rebound, driven by a blend of healthcare trends, digital innovation, and a strategic refocus on higher-margin segments.

Cigna is capitalizing on the growing demand for specialty pharmacy and care services, particularly as chronic diseases and complex treatments become more prevalent. The double-digit revenue growth in CuraScript and Accredo positions the company to capture an expanding portion of the high-growth $400B+ specialty space, supporting long-term revenue and earnings growth.

Read the complete narrative.

Curious which growth themes and ambitious financial leaps power this bullish outlook? The narrative builds its case on major shifts in platform strategy and analyst consensus for profit margins. See what else might be priced in below the surface.

Result: Fair Value of $369.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory scrutiny and shifts in healthcare reimbursement models could put pressure on Cigna’s profit margins and challenge its ambitious growth projections.

Find out about the key risks to this Cigna Group narrative.

Build Your Own Cigna Group Narrative

If you see the story differently or want to explore the numbers on your own terms, you can put together your own view in just a few minutes, and Do it your way.

A great starting point for your Cigna Group research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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