In an effort to increase shareholders' return, the board of
Everest Re Group Ltd.
) approved a 56% increase in its regular quarterly dividend to 75
cents per share from 48 cents paid during third quarter 2013.
The new dividend will be paid on or before Dec 18, 2013 to
shareholders of record as on Dec 4, 2013.
With the increased dividend, Everest Re's dividend yield
stands at 1.22%, though still lower than the industry dividend
yield of 2.97%. Also, the company's 5-year average dividend
growth rate of 2.18%, compares unfavorably with industry
growth rate of 3.49%.
Nonetheless, this dividend increase comes on the back of
Everest Re's robust capital. This Zacks Rank #2 (Buy) stock
generated strong operating cash flows of $776 million for the
first nine months of 2013, compared to $479 million in 2012.
Everest Re, however, is well-known for its active capital
management that has driven shareholder's return. The company has
historically used excess capital for buying back its shares. The
company increased its share repurchase authorization by 5 million
in second quarter 2013.
Over the first nine months of 2013, Everest Re returned $620
million to shareholders in dividends and stock repurchases.
Going forward, we believe that a strong franchise, seasoned
management team, disciplined underwriting culture, astute capital
management, conservative and high quality balance sheet bode well
for the company's long term growth, to enable it to maintain
strong operating results. This will consequently help the company
to maintain its dividend growth track.
Insurers Montpelier Re Holdings Ltd. (
EMC Insurance Group Inc.
HCI Group, Inc.
) all have increased dividend recently.
EMC INSURANCE (EMCI): Free Stock Analysis
HCI GROUP INC (HCI): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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