Markets
ORI

American Equity to Share More Profits, Ups Dividend by 10%

A generic image of a newspaper with Stock Market as the Headline.
Credit: Shutterstock photo

The board of directors of American Equity Investment Life Holding CompanyAEL approved a 10% hike in its annual dividend.

The company will pay out the meatier dividend of 22 cents per share on Dec 14, 2015 to shareholders of record on Nov 30. Based on yesterday's closing price of $26.90, the dividend currently has a yield of 0.82%.

The recent increase marks the twelfth straight year of hike, with a CAGR of 28.4%. It also marks the seventeenth consecutive year of cash dividend that has been declared by the company. The last hike of 11% was approved in Nov 2014 when the dividend was raised to 20 cents from 18 cents paid earlier.

With about 81.6 million shares outstanding at the end of the third quarter, American Equity will have to dish out nearly $18 million.

Its financial position, cushioned by a sustained solid operational performance, will support its payout. The company exited the third quarter with solid cash and cash equivalents of $523.6 million. Retained earnings were sturdy at $1 billion.

To its credit, this Zacks Rank #2 (Buy) life insurer delivered positive surprises in three of the last four quarters, with an average beat of 6.85%.

Investors interested in insurers can also look at Primerica, Inc PRI , Assured Guaranty Ltd AGO and Old Republic International Corporation ORI . While Assured Guaranty and Old Republic International sport Zacks Rank #1 (Strong Buy), Primerica shares the Zack Rank with American Equity.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AMER EQUITY INV (AEL): Free Stock Analysis Report

ASSURED GUARNTY (AGO): Free Stock Analysis Report

OLD REP INTL (ORI): Free Stock Analysis Report

PRIMERICA INC (PRI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ORI AGO AEL PRI

Other Topics

Stocks

Latest Markets Videos