United Fire Group (UFCS) Declares $0.16 Dividend

United Fire Group said on February 24, 2023 that its board of directors declared a regular quarterly dividend of $0.16 per share ($0.64 annualized). Previously, the company paid $0.16 per share.

Shares must be purchased before the ex-div date of March 9, 2023 to qualify for the dividend. Shareholders of record as of March 10, 2023 will receive the payment on March 24, 2023.

At the current share price of $28.44 / share, the stock's dividend yield is 2.25%. Looking back five years and taking a sample every week, the average dividend yield has been 2.89%, the lowest has been 1.71%, and the highest has been 6.45%. The standard deviation of yields is 1.11 (n=237).

The current dividend yield is 0.58 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 1.07. 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 -0.52%.

Learn to Harvest Dividends

Buy Stock. Capture Dividend. Sell Stock. Repeat. This is the essence of dividend harvesting and you can do it easily with Fintel's Dividend Capture Calendar.

Analyst Price Forecast Suggests 7.59% Upside

As of March 4, 2023, the average one-year price target for United Fire Group is $30.60. The forecasts range from a low of $30.30 to a high of $31.50. The average price target represents an increase of 7.59% from its latest reported closing price of $28.44.

The projected annual revenue for United Fire Group is $1,041MM, an increase of 6.19%. The projected annual non-GAAP EPS is $2.07.

What is the Fund Sentiment?

There are 356 funds or institutions reporting positions in United Fire Group. This is a decrease of 2 owner(s) or 0.56% in the last quarter. Average portfolio weight of all funds dedicated to UFCS is 0.06%, a decrease of 12.52%. Total shares owned by institutions increased in the last three months by 0.83% to 18,494K shares. The put/call ratio of UFCS is 3.45, indicating a bearish outlook.

What are large shareholders doing?

Earnest Partners holds 1,664K shares representing 6.60% ownership of the company. In it's prior filing, the firm reported owning 1,700K shares, representing a decrease of 2.21%. The firm decreased its portfolio allocation in UFCS by 14.99% over the last quarter.

IJR - iShares Core S&P Small-Cap ETF holds 1,615K shares representing 6.41% ownership of the company. In it's prior filing, the firm reported owning 1,604K shares, representing an increase of 0.70%. The firm decreased its portfolio allocation in UFCS by 12.76% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 715K shares representing 2.84% ownership of the company. No change in the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 617K shares representing 2.45% ownership of the company. In it's prior filing, the firm reported owning 609K shares, representing an increase of 1.24%. The firm decreased its portfolio allocation in UFCS by 10.73% over the last quarter.

IWM - iShares Russell 2000 ETF holds 494K shares representing 1.96% ownership of the company. In it's prior filing, the firm reported owning 464K shares, representing an increase of 6.25%. The firm decreased its portfolio allocation in UFCS by 8.01% over the last quarter.

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

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc., through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. Through its subsidiaries, the Company is licensed as a property and casualty insurer in 49 states, plus the District of Columbia, and it's represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of 'A' (Excellent) for members of the United Fire & Casualty Group.

This story originally appeared on Fintel.