Property and casualty insurer,
Cincinnati Financial Corp.
) has announced a 3.1% hike in its quarterly dividend to 42 cents
per share. The increased dividend will be paid on Oct 15, 2013,
to shareholders of record as of Sep 18, 2013.
Following this dividend hike, shares of Cincinnati Financial
will yield approximately 3.5%, which is ahead of the industry's
dividend yield of 2.06%
Management has increased the dividend every year for the past
52 years, with 5 year dividend growth rate of 2.67%.
Cincinnati Financial's annual dividend comes to $1.68 per
share. The company last made a 0.5 cent hike in its quarterly
dividend to 40.75 cents per share in Aug 2012.
The continuous dividend payment is supported by Cincinnati
Financial strong capital and continuous cash flow generation. The
company had $13.315 billion in consolidated cash and invested
assets at June 30, 2013, up 2% from $13.021 billion at year-end
2012. Its inherent capital strength can also be testified by its
low debt-to-capital ratio which was 13.6% as of Jun 30, 2013,
compared with 14.1% at the end of 2012.
Cincinnati Financial is committed to rewarding shareholders
directly through cash dividends and by authorizing share
repurchases. We are impressed by the company's efforts to
maintain the trend even in the midst of the soft property and
casualty insurance market when it was facing top line growth
pressure. Now that the property and casualty insurance market
pricing has improved substantially, and the company is witnessing
a good growth in most of its business lines, we are confident to
see a higher magnitude of dividend increase, going forward.
We believe that in the near term, the stock will be helped by
dividend increases and stock buyback activities, along with good
Cincinnati Financial ranks among the top 25 leading U.S.
property and casualty insurers, and carries an A+ rating from
Cincinnati financial currently retains a Zacks Rank #3 (Hold).
HCI Group Inc.
Everest Re Group Ltd.
State Auto Financial Corp.
) all carry favorable Zacks Rank #1 (Strong Buy) and look
CINCINNATI FINL (CINF): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
STATE AUTO FINL (STFC): Free Stock Analysis
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