Back to top

Analyst Blog

In an effort to increase shareholders’ return, the board of directors of Everest Re Group Ltd. (RE - Analyst Report) approved a 56% increase in its regular quarterly dividend to 75 cents per share from 48 cents paid during third quarter 2013.

The new dividend will be paid on or before Dec 18, 2013 to shareholders of record as on Dec 4, 2013.

With the increased dividend, Everest Re’s dividend yield stands at 1.22%, though still lower than the industry dividend yield of 2.97%. Also, the company’s 5-year average dividend growth rate of 2.18%, compares unfavorably with  industry growth rate of 3.49%.

Nonetheless, this dividend increase comes on the back of Everest Re’s robust capital. This Zacks Rank #2 (Buy) stock generated strong operating cash flows of $776 million for the first nine months of 2013, compared to $479 million in 2012.

Everest Re, however, is well-known for its active capital management that has driven shareholder’s return. The company has historically used excess capital for buying back its shares. The company increased its share repurchase authorization by 5 million in second quarter 2013.

Over the first nine months of 2013, Everest Re returned $620 million to shareholders in dividends and stock repurchases.

Going forward, we believe that a strong franchise, seasoned management team, disciplined underwriting culture, astute capital management, conservative and high quality balance sheet bode well for the company’s long term growth, to enable it to maintain strong operating results. This will consequently help the company to maintain its dividend growth track.

Insurers Montpelier Re Holdings Ltd. (MRH - Analyst Report), EMC Insurance Group Inc. (EMCI - Snapshot Report), HCI Group, Inc. (HCI - Snapshot Report) all have increased dividend recently.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%