) hiked its quarterly dividend by 3% to 65 cents per share. The
annualized dividend of $2.60 per share yields 2.5% based on the
closing price of $102.29 on May 15, 2014.
The latest increase, announced at the company's extraordinary
general meeting, comes within four months since the board declared
its previous quarterly dividend hike of 24%.
ACE Limited has an impressive track of raising dividend each year
and has been paying quarterly dividends each quarter since it
became a public company in 1993. This Zacks Rank #2 (Buy) property
and casualty insurer has raised its dividend by about 150% over the
last 5 years, with its yield outperforming the sector average of
The company intends to pay out around 30% of its operating earnings
to its shareholders.
The increased dividend will be paid on Aug 13, 2014 to shareholders
of record on Jul 23.
A sturdy financial position backed by continued solid operational
performance positions it well for increased payouts.
Shares of ACE Limited have gained almost 1.9% year to date riding
on the strength of strong operating results which have been helping
it to outperform expectation over several quarters.
The stock is witnessing continued upward movement in its estimates.
And with continued endeavors that ultimately enhance shareholders
value, we expect the momentum to continue. The Zacks Consensus
Estimate of $8.94 and 9.23 respectively for 2014 and 2015 reflect
increases of 2.3% and 1.2% in the last 30 days.
Several insurers are treading the same path as ACE Limited and
announcing dividend increases. These insurers foresee the hikes as
strategies to retain investor confidence as well as attract new
investors. Recently, the board of directors of
The Travelers Companies Inc
) increased the company's dividend by 10% to 55 cents per share.
The board of directors of
) announced a 5 .9% hike in the company's quarterly dividend to 18
cents per share. Furthermore, the board of directors of
) approved an 8% increase in the quarterly cash dividend to 27
cents per share.
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