) has declared a special cash dividend of $1.00 per share in
order to share its strong operating and investment results with
the shareholders. The dividend will be paid on November 29, 2012
to shareholders of record as of November 21, 2012.
Progressive Corp. believes in regularly returning capital to
its shareholders. The company pays a lump sum annual dividend,
which is calculated on the basis of its operating performance.
This special dividend will be paid in addition to Progressive
Corp.'s annual cash dividend, which is usually declared in the
month of December every year and paid in January.
The special dividend will allow Progressive Corp. to return
about $600 million to shareholders. Based on the company's
closing share price of $22.20 on October 12, 2012, when the
dividend was declared, the special dividend implies a dividend
yield of 4.5%.
The special dividend was declared on the back of Progressive
Corp.'s impressive operating performance in the third quarter of
2012. The company's earnings per share for the third quarter of
2012 were 46 cents, surging nearly 92% from 24 cents in the
year-ago quarter. Results outpaced the Zacks Consensus Estimate
of 26 cents. Net income shot up 84% from the third quarter of
2011 to $277.0 million in the reported quarter.
Concurrently, Progressive Corp. announced the selection of
Jeffrey D. Kelly as a member of its board of directors. Mr. Kelly
has prior experience as the company's board member since he
served the board from 2000 to 2009. He has also served as the
Executive Vice President and Chief Financial Officer of
RenaissanceRe Holdings Ltd.
) and Vice Chairman and Chief Financial Officer of National City
Progressive Corp. carries a Zacks #3 Rank (short-term Hold
rating). We maintain a long-term 'Underperform' recommendation on
PROGRESSIVE COR (PGR): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
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