Brown & Brown: Acquisitions Fuel EPS Growth

Brown & Brown, Inc. remains a Buy, with bolt-on acquisitions offsetting a -0.7% organic revenue decline in Q2 2026. BRO’s scale and BBB- credit rating enable accretive M&A, supporting 7.5% annual EPS growth through 2028 despite softening CAT rates. Shares trade at a forward P/E of 15.24, well below the 10-year average, implying a 26% upside to a $90 fair value. The 0.9% yield and low payout ratio support 10%+ annual dividend growth, extending BRO’s 32-year Dividend Aristocrat streak.

Companies have a number of different ways to attempt to grow. First and foremost is the most popular, which is organic growth. This is the company growing through the products and services that