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Unum Group (UNM) Hikes Dividend by 8%, Approves Buyback
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The board of directors of Unum Group (UNM - Free Report) hiked its quarterly dividend by 8% and approved a new $750 million share buyback program in its efforts to share more profits with its shareholders.
The new dividend payout comes to 20 cents per share, up from 18.5 cents paid earlier. The annualized dividend of 80 cents per share yields 2.2% based on yesterday’s closing price of $34.94. Shareholders are expected to have the meatier dividend in their pockets in the third quarter of this year.
Unum Group has an impressive track of raising dividend each year. While the latest hike marks the eighth straight year of increase, this Zacks Rank #3 (Hold) accident and health insurer increased dividend by 167% from 7.5 cents paid in 2007.
Apart from the dividend increase, Unum also engages in share buybacks that lower the share count and boost the bottom line. To that end, the board of directors authorized the company to buy back up to $750 million share through Nov 26, 2017. The new program replaces the prior $750 million program scheduled to expire on Nov 21, 2016.
With $100 million spent on buying back 3.7 million s hares in the first quarter, Unum Group has repurchased $3.3 billion worth shares since the fourth quarter of 2007 and lowered its share count by 36%. The insurer’s concerted efforts to enhance shareholders value should make Unum an attractive pick for yield seeking investors.
A sturdy financial position backed by continued solid operational performance by core operations enables the company to generate enough capital. This in turn positions it well to increase its payouts or engage in other shareholder-friendly moves. Unum is decently liquid with cash from operations of $293 million in the first quarter and retained earnings at a solid $8.2 billion (up 2.5% from 2015 end).
Several insurers are treading the same path as Unum Group and announcing dividend increases or approving share buyback programs. Recently, the board of directors of W.R. Berkley Corporation (WRB - Free Report) approved an 8% hike in its quarterly dividend. Marsh & McLennan Companies (MMC - Free Report) was approved a 9.7% hike in its quarterly cash dividend while the board of directors of The United Insurance Health Corp. raised its payout by 20%.
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Unum Group (UNM) Hikes Dividend by 8%, Approves Buyback
The board of directors of Unum Group (UNM - Free Report) hiked its quarterly dividend by 8% and approved a new $750 million share buyback program in its efforts to share more profits with its shareholders.
The new dividend payout comes to 20 cents per share, up from 18.5 cents paid earlier. The annualized dividend of 80 cents per share yields 2.2% based on yesterday’s closing price of $34.94. Shareholders are expected to have the meatier dividend in their pockets in the third quarter of this year.
Unum Group has an impressive track of raising dividend each year. While the latest hike marks the eighth straight year of increase, this Zacks Rank #3 (Hold) accident and health insurer increased dividend by 167% from 7.5 cents paid in 2007.
Apart from the dividend increase, Unum also engages in share buybacks that lower the share count and boost the bottom line. To that end, the board of directors authorized the company to buy back up to $750 million share through Nov 26, 2017. The new program replaces the prior $750 million program scheduled to expire on Nov 21, 2016.
With $100 million spent on buying back 3.7 million s hares in the first quarter, Unum Group has repurchased $3.3 billion worth shares since the fourth quarter of 2007 and lowered its share count by 36%. The insurer’s concerted efforts to enhance shareholders value should make Unum an attractive pick for yield seeking investors.
A sturdy financial position backed by continued solid operational performance by core operations enables the company to generate enough capital. This in turn positions it well to increase its payouts or engage in other shareholder-friendly moves. Unum is decently liquid with cash from operations of $293 million in the first quarter and retained earnings at a solid $8.2 billion (up 2.5% from 2015 end).
Several insurers are treading the same path as Unum Group and announcing dividend increases or approving share buyback programs. Recently, the board of directors of W.R. Berkley Corporation (WRB - Free Report) approved an 8% hike in its quarterly dividend. Marsh & McLennan Companies (MMC - Free Report) was approved a 9.7% hike in its quarterly cash dividend while the board of directors of The United Insurance Health Corp. raised its payout by 20%.
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 >>