Does Brighthouse Financial’s (BHF) Capital Return Emphasis Signal Enduring Profitability or Cautious Optimism?

• Brighthouse Financial announced on August 15, 2025, that it will pay quarterly dividends on its Series A, B, C, and D preferred depositary shares to holders of record as of September 10, 2025, with payments scheduled for September 25, 2025.
• This commitment to preferred shareholder dividends comes alongside the company's completion of a large share buyback and recent improvements in earnings, reflecting an ongoing focus on capital returns and profitability.
• Next, we'll consider how maintaining robust dividends and buybacks influences Brighthouse Financial's investment outlook and analyst expectations.

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Brighthouse Financial Investment Narrative Recap

To own Brighthouse Financial stock, an investor needs to believe in the company’s ability to generate sustainable earnings and deliver reliable capital returns, even through periods of market volatility. The newly announced preferred dividends reinforce management's intent to maintain shareholder payouts, but this news does not materially shift near-term catalysts, which center on consistent profitability, nor does it reduce the company's biggest immediate risk: sustained statutory and GAAP losses affecting long-term return potential and capital strength.

Of the recent headlines, the large-scale share repurchase program, retiring over 6.3 million shares since late 2023, stands out for its potential to support earnings per share and enhance shareholder value in the short term. While these actions may help drive value, they do not directly address underlying earnings volatility and capital constraints tied to Brighthouse's business mix, which remains a central focus for most analysts assessing catalysts for future performance.

However, investors should be aware that despite renewed dividends and buybacks, persistent statutory losses remain a critical issue to watch...

Read the full narrative on Brighthouse Financial (it's free!)

Brighthouse Financial's narrative projects $9.6 billion in revenue and $1.0 billion in earnings by 2028. This requires 6.1% yearly revenue growth and a $438 million earnings increase from the current $562.0 million.

Uncover how Brighthouse Financial's forecasts yield a $56.22 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have offered a wide spread of fair value estimates for Brighthouse Financial, ranging from US$56 to US$119 per share across 2 distinct views. As shareholders gauge these numbers, remember that ongoing volatility in annuity and Shield product segments continues to shape how the company’s long-term earnings power is assessed.

Explore 2 other fair value estimates on Brighthouse Financial - why the stock might be worth just $56.22!

Build Your Own Brighthouse Financial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brighthouse Financial research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Brighthouse Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brighthouse Financial's overall financial health at a glance.

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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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