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Lincoln National Increases Share Buyback Program to $1B

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The board of directors of Lincoln National Corporation (LNC - Free Report) increased the company’s share buyback program. With the new approval, the company is authorized to repurchase shares up to $1 billion.

Share repurchases benefit the company’s earnings per share, book value and shareholder equity, as these reduce the number of shares outstanding. A solid liquidity position driven by sustained operational strength has always supported Lincoln National in effective capital deployment.

The insurer has always engaged in share buybacks to give a boost to the bottom line. Lincoln National spent $200 million to buy back 5.5 million shares during the reported quarter. The company repurchased about 15.5 million shares for $750 million in a period of 12 months. As of Mar 31, 2016, the company had $368 million worth of shares remaining under its authorization.
    
Concurrently, the board of directors also announced a quarterly cash dividend of 25 cents per share. Shareholders of record on Jul 11 will get the dividend on Aug 1. Its dividend yield of 2.17% is better than the industry average of 1.34%. Lincoln National’s capital deployment through share buyback and dividend payment looks impressive, making its stock an attractive pick for yield-seeking investors.

Currently, Lincoln National carries a Zacks Rank #3 (Hold). Some better-ranked life insurers include Health Insurance Innovations, Inc. , Manulife Financial Inc. (MFC - Free Report) and Sun Life Financial Inc. (SLF - Free Report) . While  Health Insurance Innovations and Manulife Financial sport a Zacks Rank #1 (Strong Buy), Sun Life Financial carries a Zacks Rank #2 (Buy).

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