In a concerted effort to enhance shareholder value, the board
of directors of
) authorized an increase of approximately 6.25% in its dividend.
The company will now pay a quarterly dividend of 34 cents per
share, up from 32 cents per share paid earlier.
The newly increased dividend will be paid on Jun 20, 2013 to the
shareholders of record as of May 31, 2012. The increased dividend
represents a yield of 1.9%. It is better than the dividend yield
of a few other property and casualty insurers -
HCC Insurance Holdings Inc
) with a yield of 1.5%,
Montpelier Re Holdings Ltd
) with a yield of 1.8% and
Platinum Underwriters Holdings Ltd
) with a yield of 0.6%.
RLI Corp. has been hiking its dividend over the past 38 years.
The previous hike was authorized in May 2012, when the board
approved a 6.7% increase in dividend. The company has a record of
paying dividends for 148 consecutive quarters.
RLI Corp. has always remained focused on returning more value to
its shareholders. In fact, the company has paid a special
dividend once in each of the last three years. A special dividend
of $5.00 per share was paid in Dec 2012.
Based on the 21.6 million shares outstanding as of Mar 31, 2013,
the company requires $7.3 million for the payment of the
quarterly dividend. Cash balance at the end of the third quarter
stood at 22.4 million, sufficient to meet the additional
Mid last month, RLI Corp. reported first-quarter 2013 operating
earnings of $1.04 per share. Though it lagged the Zacks Consensus
Estimate of $1.06 by 1.89%, operating earnings surpassed the
year-ago level of 96 cents by 8.3%. The year-over-year
improvement came on the back of better underwriting results at
Casualty and Surety.
RLI Corp. carries a Zacks Rank #3 (Hold).
HCC INS HLDGS (HCC): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
PLATINUM UNDRWT (PTP): Free Stock Analysis
RLI CORP (RLI): Free Stock Analysis Report
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