In order to share more profits with its shareholders, the
board of directors of
Assured Guaranty Ltd
) approved an 11% increase in its quarterly dividend. Assured
Guaranty will now pay a quarterly dividend of 10 cents per share,
up from 9 cents paid on Dec 5, 2012. The increased dividend will
be paid on Mar 7, 2013 to shareholders of record as of Feb 21,
The board had approved a dividend hike in the previous year as
well. On Feb 9, 2012, the board approved a 100% increase in
dividend to 9 cents from 4.50 cents.
Moreover, Assured Guaranty has maintained a track record of
paying quarterly dividends. Based on the closing share price of
$19.24 on Feb 7, the increased dividend implies a dividend yield
of 2.1%. Its dividend yield is also better than a few other
multi-line insurers like
), with a yield of 0.06%,
CNO Financial Group Inc
), with a yield of 0.79% and
FBL Financial Group Inc
) with a yield of 1.14%.
Based on 197 million shares outstanding as of Sep 30, 2012, the
company requires $19.7 million for the payment of the quarterly
dividend. Cash balance at the end of the third quarter stood at
$133 million, sufficient enough to meet the additional
Over the last 7 days, there was no earnings momentum. We believe
that the decision to share more profits with shareholders might
encourage analysts to revise their estimates upward.
Assured Guaranty is yet to report its fourth-quarter and
full-year 2012 results. The Zacks Consensus Estimates for the
fourth quarter and full year 2012 are pegged at 71 cents per
share and $2.55 per share, respectively. These represent a
year-over-year decrease of 25.6% and 21.7%, respectively. Assured
Guaranty presently carries a Zacks Rank #1 (Strong Buy).
ASSURED GUARNTY (AGO): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
CNO FINL GRP (CNO): Free Stock Analysis
FBL FINL GRP-A (FFG): Free Stock Analysis
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