In order to boost shareholders value,
Old Republic International Corporation
) increased its quarterly dividend by 1.4%. This translates into
a quarterly cash dividend of 18.25 cents per share, up from 18
cents per share paid on Dec 16, 2013. The increased dividend will
be paid on Mar 14, 2014, to shareholders of record as of Mar 4,
The news boosted investor sentiment, driving share price 0.8% in
the day's trading session. Shares closed at $15.41 on Feb 21,
Based on the closing share price, the increased dividend implies
a dividend yield of 4.7%. The current dividend yield is better
than the industry yield of 2.05% and that of some other multiline
Radian Group Inc.
) with a yield of 0.06%,
American International Group, Inc.
) with a yield of 1.02% and
Assured Guaranty Ltd.
) with a yield of 1.91%.
With this hike, the current annual dividend equates to 73 cents
per share, up from 72 cents paid in 2013. This dividend
represents the 33rd annual hike in dividends paid by Old
Republic. The company has increased its dividend at an eight-year
CAGR of 3.4%.
The consistent dividend hikes represent the financial strength
and long-term outlook of the company. Old Republic has been
consistently paying dividends since 1941. The company has ample
liquidity for the payment, with cash flow from operations of
$686.7 million at year-end 2013, comparing favorably with $532
million at end-2012.
Old Republic currently carries a Zacks Rank #1 (Strong Buy).
Investors interested in the insurance industry may also consider
Radian with a Zacks Rank #2 (Buy).
ASSURED GUARNTY (AGO): Free Stock Analysis
AMER INTL GRP (AIG): Free Stock Analysis
OLD REP INTL (ORI): Free Stock Analysis
RADIAN GRP INC (RDN): Free Stock Analysis
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