Property and casualty insurer,
) has announced a 13.6% hike in its quarterly dividend payment.
The increased dividend of 50 cents per share will be paid on Apr
1, 2014 to shareholders of record on Mar 14.
This increase marks the 32
consecutive dividend hike, indicative of the company's financial
strength and resilience in a cyclical industry. Chubb has been
paying cash dividends to shareholders each year since 1902, as a
testimony to the company's solid liquidity and solvency position
(Chubb's debt to capital ratio has traditionally stayed below
Prior to this, the company had increased its dividend by 7.3% in
the first quarter of 2013.
Chubb's dividend yield stands at 2.04%, a tad below the industry
dividend yield of 2.12%. However, the company's 5-year average
dividend growth rate of 2.23% is higher than that of the industry
growth rate of 1.95%.
Chubb Corp. - one of the largest U.S. property-casualty insurers,
has carved out its niche in high-end personal lines and specialty
liability lines of coverage. It is a member of the S&P 500, a
Dividend Aristocrat and a member of the Broad Dividend Achievers
Index. We are impressed with Chubb's commitment to pay rewards to
its shareholders increasingly every year, irrespective of the
difficult market conditions that plague the company's
performance. Going forward, we expect the company to keep moving
on this dividend track, aided by improving industry fundamentals
which should place the company in a more comfortable position
Moreover, over the past ten years, the company has kept its
dividend payout below 50% (except in 2001 and 2002). This
tendency assures chances of a consistent annual dividend
increase, which would set aside large short-term fluctuations.
A strong 2013 with benign cat loss and improving insurance
pricing has left most of the insurers with surplus capital which
is now being used to make increased dividend payments and
additional share buybacks. Among other insurers,
Montpelier Re Holdings Ltd.
EMC Insurance Group Inc.
HCI Group, Inc.
) have also increased their dividend in the fourth quarter of
Chubb currently retains a Zacks Rank #3 (Hold).
CHUBB CORP (CB): Free Stock Analysis Report
EMC INSURANCE (EMCI): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
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