The shareholders of
), at the extraordinary general meeting held on May 16, 2013,
approved the board's proposal to hike the quarterly dividend to
51 cents. The increased dividend represents an increase of 4%
from 49 cents paid earlier.
The first increased dividend will be paid on Aug 13, 2013 to the
shareholders of record on Jul 23, 2013.
On an annualized basis, ACE Limited will now pay a dividend of
$2.04 per share, up from $1.96 per share. Previously, in May
2012, the board announced a 4.25% increase in the quarterly
dividend to 49 cents ($1.96 on an annualized basis), up from 47
cents ($1.88 on an annualized basis).
ACE has had a consistent track record of paying quarterly
dividends and the current dividend is not an exception. In
addition, the company has a record of increasing its dividend
every year. Its dividend yield is 2.23%, which is above the
industry yield of 2.04%.
ACE appears to have a strong capital and liquidity position,
helping it increase the quarterly dividend. The cash balance of
ACE Limited at the end of first quarter totaled $855 million, up
39% from 2012 year-end level.
ACE Limited guided 2013 operating earnings to a band of
$7.10-$7.50 per share, up from $6.60-$7.00 per share guided
earlier. The Zacks Consensus Estimate for 2013 is $8.10, above
the company guidance.
Over the last 7 days, there has been no earnings momentum. We
expect that the dividend hike will encourage analysts to pull the
ACE Limited posted a strong first quarter, benefiting from solid
underwriting performances. Both the U.S. and international
business operations experienced growth and better margins. ACE
Limited also benefited from improved commercial property &
casualty (P&C) pricing environment. The company is well
poised on the strength of its international presence, diversified
product offering, risk management, conservative underwriting
practice and strong reserves. ACE Limited remains focused to
enhance its earnings, return on equity and book value per share.
ACE Limited currently carries a Zacks Rank #3 (Hold). Property
and casualty insurers,
AXIS Capital Holdings Limited
Hilltop Holdings Inc
Montpelier Re Holdings Ltd
), among others carry a favorable Zacks Rank # 1 (Strong Buy) and
ACE LIMITED (ACE): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis
HILLTOP HLDGS (HTH): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
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