Assessing Unum Group (UNM) Valuation Following Dividend Hike and Share Buyback Plans

Unum Group (UNM) is drawing attention after announcing a 15% dividend increase and outlining plans for major share repurchases in 2025. This move underscores its continued focus on returning value to shareholders.

See our latest analysis for Unum Group.

Unum Group’s steady premium growth and another dividend hike have set an optimistic tone, with the share price rising alongside confidence in the company’s long-term earnings power. Over the past year, total shareholder return stands at an impressive 32%, underscoring both momentum and resilience beyond just the current announcement.

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With the stock still trading nearly 17% below the average analyst price target and showing solid premium growth, the key question remains: does Unum Group offer genuine value here, or is the market already pricing in its future gains?

Most Popular Narrative: 14.7% Undervalued

Unum Group’s last close price of $79.42 comes in well below the most widely followed narrative’s fair value estimate of $93.08, setting the stage for further upside if growth meets expectations. The latest consensus frames the company as a disciplined capital allocator, with a financial profile that gives it room to exceed market forecasts.

Strong capital generation and excess liquidity (including an anticipated holding company cash position of $2 to $2.5 billion) position Unum to sustain elevated levels of shareholder returns through dividends and share buybacks, providing a pathway for EPS growth and continued financial flexibility.

Read the complete narrative.

Want to know the narrative math behind this premium? Hidden inside is a blend of steady top-line growth, predicted margin shifts, and bold profit assumptions. Which single forecasted move could shift the entire valuation trajectory?

Result: Fair Value of $93.08 (UNDERVALUED)

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

However, ongoing long-term care claims and rising competition could sharply pressure earnings and challenge the optimism that is currently reflected in valuations.

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

Build Your Own Unum Group Narrative

If you see things differently or want to dig into the details yourself, you're free to build your own story with the data in just a few minutes, and Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Unum Group.

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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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