Should Strong Q3 Results and Dividend Stability Shape Lincoln National (LNC)'s Future Outlook?

• Lincoln National Corporation recently declared a quarterly cash dividend of US$0.45 per share, payable on February 2, 2026, to shareholders of record as of January 12, 2026, alongside reporting third-quarter 2025 earnings per share of US$2.06 that exceeded analyst expectations.
• A director's recent purchase of 2,000 shares and robust annuity sales of US$4.5 billion signal increasing management confidence and strong core business performance at Lincoln National.
• We’ll examine how strong operating results and renewed dividend stability affect the company’s outlook for profitability and growth.

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Lincoln National Investment Narrative Recap

To own shares in Lincoln National, investors need to be comfortable with the company’s strategy of transforming its business toward more stable, capital-efficient products while managing exposure to legacy risks, particularly in variable annuities. The latest dividend affirmation and stronger-than-expected earnings may reinforce confidence in management’s direction, but they do not materially alter the near-term catalyst of successful operating performance or the most pressing risk of capital strain from older annuity guarantees.

One particularly relevant announcement is the declaration of a US$0.45 quarterly dividend, which signals management’s emphasis on maintaining stability in shareholder returns. This is important context for investors keeping an eye on the core profitability trends, as sustaining the dividend remains closely tied to risks in the legacy portfolio and the company’s efforts to boost operational cash flow.

However, investors should not lose sight of the potential effects of future equity market downturns on ...

Read the full narrative on Lincoln National (it's free!)

Lincoln National's outlook suggests revenues of $21.0 billion and earnings of $1.6 billion by 2028. This is based on a forecasted annual revenue growth rate of 5.2% and an earnings increase of $0.6 billion from the current earnings of $1.0 billion.

Uncover how Lincoln National's forecasts yield a $44.00 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three members of the Simply Wall St Community range from US$28.99 to US$92.75 per share. While many see value given the company’s ongoing shift toward higher-margin products, consider how legacy annuity exposures could influence future results before forming an outlook.

Explore 3 other fair value estimates on Lincoln National - why the stock might be worth over 2x more than the current price!

Build Your Own Lincoln National 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 Lincoln National research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Lincoln National research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lincoln National'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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