HCC Insurance Holdings, Inc.
) announced a hike in its quarterly cash dividend to 16.5 cents per
share from 15.5 cents per share paid in July 2012. The increased
dividend will be paid on October 15, 2012, to shareholders of
record as of October 1. Based on the closing share price of $32.37
on August 24, the increased dividend implies a dividend yield of
0.51%, compared with the earlier yield of 0.48%.
HCC follows a policy of raising its dividend every year. This is
consecutive year of dividend rise for the company. Also, it is the
consecutive quarter in which the company is paying a cash dividend.
The regular dividend hikes reflect HCC's commitment toward
enhancing shareholder value as well as its operating strength,
which allows management to raise the dividend regularly.
HCC's consistent dividend policy is supported by its ample
operating cash flows. Based on 100.7 million shares outstanding as
of July 27, 2012, the company requires $16.6 million for the
payment of the quarterly dividend. Meanwhile, HCC generated cash
flow from operations of $244.6 million in the first half of 2012,
which is more than adequate to cover the dividend payment.
HCC's peers such as
The Travelers Companies Inc.
W.R. Berkley Corporation
) also regularly return value to shareholders through dividend
payments. Earlier this month, W.R. Berkley declared a cash dividend
of 9 cents per share and ACE Limited announced a quarterly dividend
of 4 cents per share. Additionally, Travelers declared a quarterly
dividend of 46 cents per share last month with its second-quarter
HCC carries a Zacks #2 Rank, which translates into a short-term
ACE LIMITED (ACE): Free Stock Analysis Report
HCC INS HLDGS (HCC): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
BERKLEY (WR) CP (WRB): Free Stock Analysis
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