In an effort to distribute more profit among shareholders, the
board of directors of
) authorized an increase of 11.5% in its dividend. The company
will now pay a quarterly dividend of 14.5 cents per share, up
from 13 cents per share paid on May 17, 2013.
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UNUM GROUP (UNM): Free Stock Analysis Report
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The increased dividend will be paid in third quarter of 2013. The
new annualized rate comes to 58 cents per share and represents a
yield of 2.1% based on Thursday's closing price of $27.56.
The dividend yield compare favorably with the industry average of
1.50% as well as with other accident and health insurer
) with a yield of 0.98% and
Employers Holdings, Inc
) with a yield of 0.97%.
With this approval, Unum Group hiked dividend for five straight
years. Moreover, the new dividend represents 93.3% increase from
the 7.5 cents per share paid in 2007.
Based on the 270.4 million shares outstanding as of Mar 31, 2013,
the company requires $39.2 million for the payment of the
quarterly dividend. Unum Group's continued sturdy operational
results coupled with strong capital positive provide it
sufficient cushion to hike dividend as well as pay the same
Besides dividend hikes, Unum Group have embarked on share
repurchases to enhance its shareholders value. Its first quarter
2013 share buybacks totaled $95 million or 3.7 million shares.
The company was left with $454.9 million under its authorization.
), which offers accident and health insurance, at its
extraordinary general meeting held on May 16, 2013, approved the
board's proposal to hike the quarterly dividend to 51 cents. The
increased dividend represents an increase of 4% from 49 cents
Unum Group currently carries a Zacks Rank #3 (Hold).