Essent Group (ESNT) Declares $0.25 Dividend

Essent Group said on August 4, 2023 that its board of directors declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Previously, the company paid $0.25 per share.

Shares must be purchased before the ex-div date of August 31, 2023 to qualify for the dividend. Shareholders of record as of September 1, 2023 will receive the payment on September 11, 2023.

At the current share price of $52.35 / share, the stock's dividend yield is 1.91%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.90%, the lowest has been 1.10%, and the highest has been 3.21%. The standard deviation of yields is 0.47 (n=236).

The current dividend yield is 0.03 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.16. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.56%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 706 funds or institutions reporting positions in Essent Group. This is an increase of 13 owner(s) or 1.88% in the last quarter. Average portfolio weight of all funds dedicated to ESNT is 0.25%, an increase of 5.19%. Total shares owned by institutions increased in the last three months by 1.29% to 130,137K shares. The put/call ratio of ESNT is 1.08, indicating a bearish outlook.

Analyst Price Forecast Suggests 1.71% Downside

As of August 2, 2023, the average one-year price target for Essent Group is 51.45. The forecasts range from a low of 47.47 to a high of $57.75. The average price target represents a decrease of 1.71% from its latest reported closing price of 52.35.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Essent Group is 1,072MM, an increase of 6.33%. The projected annual non-GAAP EPS is 6.40.

What are Other Shareholders Doing?

Capital World Investors holds 10,518K shares representing 9.83% ownership of the company. In it's prior filing, the firm reported owning 10,491K shares, representing an increase of 0.26%. The firm increased its portfolio allocation in ESNT by 0.14% over the last quarter.

SMCWX - SMALLCAP WORLD FUND INC holds 8,605K shares representing 8.04% ownership of the company. In it's prior filing, the firm reported owning 6,730K shares, representing an increase of 21.79%. The firm increased its portfolio allocation in ESNT by 23.05% over the last quarter.

AGTHX - GROWTH FUND OF AMERICA holds 5,465K shares representing 5.11% ownership of the company. No change in the last quarter.

Macquarie Group holds 3,933K shares representing 3.68% ownership of the company. In it's prior filing, the firm reported owning 3,889K shares, representing an increase of 1.10%. The firm increased its portfolio allocation in ESNT by 4.77% over the last quarter.

Cooke & Bieler holds 3,761K shares representing 3.52% ownership of the company. In it's prior filing, the firm reported owning 3,893K shares, representing a decrease of 3.52%. The firm increased its portfolio allocation in ESNT by 6.88% over the last quarter.

Essent Group Background Information
(This description is provided by the company.)

Essent Group Ltd. is a Bermuda-based holding company (collectively with its subsidiaries, “Essent”) which, through its wholly-owned subsidiary, Essent Guaranty, Inc., offers private mortgage insurance for single-family mortgage loans in the United States. Essent provides private capital to mitigate mortgage credit risk, allowing lenders to make additional mortgage financing available to prospective homeowners. Headquartered in Radnor, Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage insurance in all 50 states and the District of Columbia, and is approved by Fannie Mae and Freddie Mac. Essent also offers mortgage-related insurance, reinsurance and advisory services through its Bermuda-based subsidiary, Essent Reinsurance Ltd. Essent is committed to supporting environmental, social and governance (“ESG”) initiatives that are relevant to the company and align with the companywide dedication to responsible corporate citizenship that positively impacts the community and people served.

Additional reading:

• Essent Group Ltd. Announces Second Quarter 2023 Results and Declares Quarterly Dividend
• SECOND AMENDED AND RESTATED ESSENT GROUP LTD. 2013 LONG-TERM INCENTIVE PLAN ADOPTED BY THE BOARD OF DIRECTORS: FEBRUARY 7, 2023 APPROVED BY THE SHAREHOLDERS: MAY 2, 2023 TERMINATION DATE: FEBRUARY 7, 2033
• Essent Group Ltd. Announces First Quarter 2023 Results and Declares Quarterly Dividend
• March 13, 2023
• Essent Group Ltd. Announces the Promotion of David B. Weinstock to Chief Financial Officer Essent Appoints Chief Financial Officer

This story originally appeared on Fintel.