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Erie Indemnity (ERIE) Hikes Dividend to Share More Profits
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The board of directors of Erie Indemnity Company (ERIE - Free Report) approved a 7.2% hike in its dividend. Shareholders of record as of Jan 5, 2022 will receive the meatier dividend on Jan 20, 2022.
With this, the payout now stands at $1.11 per Class A share compared with the earlier payout of $1.035 per share and $166.50 per Class B share compared with the earlier payout of $155.25 per share. Erie Indemnity has been paying dividends since 1933. Based on the stock’s Dec 9 closing price of $189.74, the new dividend on Class A shares will yield 2.3%, better than the industry average of 1.1%.
Erie Indemnity has increased dividends each year, reflecting operational excellence and the company’s commitment to return value to its shareholders. Its dividend witnessed a 10-year CAGR of nearly 8%.
Effective capital deployment is supported by its balance sheet strength. Apart from hiking dividends, Erie Indemnity occasionally pays special dividends and buys back shares. Erie Indemnity had $17.8 million remaining under its buyback authorization as of Sep 30, 2021.
Improvement in premiums of homeowners and commercial multi-peril products, strengthening of business platforms as well as identification and development of new sources of revenues should help Erie Indemnity sustain dividend hikes.
Shares of Erie Indemnity have lost 18.8% in a year against the industry’s increase of 30.9%. ERIE presently carries a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Given the solid capital level of the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like The Hanover Insurance Group, Inc. (THG - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Primerica, Inc. (PRI - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
The board of directors of The Hanover Insurance Group approved a 7% hike in its quarterly dividend, reflecting operational excellence and commitment to return value to its shareholders. THG’s dividend witnessed an 11-year CAGR of 10.5%.
Prudent management of business mix, focus on the growth of the most profitable product lines, stable retention, better pricing and strong market presence should support The Hanover Insurance has maintained the streak of raising dividends each year.
The board of directors of AXIS Capital approved a 2.4% hike in its annual dividend in its continued effort to boost shareholders’ value backed by balance sheet strength.
AXIS Capital should be able to continually enhance shareholder value, riding on Specialty Insurance, Reinsurance plus Accident and Health, exiting underperforming lines, investing in more attractive markets, and entering new markets, thus improving portfolio mix and underwriting profitability.
The board of directors of Primerica authorized a $275 million share buyback program through next year. Operational excellence backed by solid market presence, growing business and a strong business model should continue to support Primerica in generating enough capital to return to shareholders continually.
Primerica’s total stockholder return has continually outperformed the S&P 500 Index over the last five years. It has also raised dividends 10 times in the last nine years.
Shares of The Hanover Insurance Group, Axis Capital and Primerica have gained 12.2%, 0.9% and 11.7% in a year.
Image: Bigstock
Erie Indemnity (ERIE) Hikes Dividend to Share More Profits
The board of directors of Erie Indemnity Company (ERIE - Free Report) approved a 7.2% hike in its dividend. Shareholders of record as of Jan 5, 2022 will receive the meatier dividend on Jan 20, 2022.
With this, the payout now stands at $1.11 per Class A share compared with the earlier payout of $1.035 per share and $166.50 per Class B share compared with the earlier payout of $155.25 per share. Erie Indemnity has been paying dividends since 1933. Based on the stock’s Dec 9 closing price of $189.74, the new dividend on Class A shares will yield 2.3%, better than the industry average of 1.1%.
Erie Indemnity has increased dividends each year, reflecting operational excellence and the company’s commitment to return value to its shareholders. Its dividend witnessed a 10-year CAGR of nearly 8%.
Effective capital deployment is supported by its balance sheet strength. Apart from hiking dividends, Erie Indemnity occasionally pays special dividends and buys back shares. Erie Indemnity had $17.8 million remaining under its buyback authorization as of Sep 30, 2021.
Improvement in premiums of homeowners and commercial multi-peril products, strengthening of business platforms as well as identification and development of new sources of revenues should help Erie Indemnity sustain dividend hikes.
Shares of Erie Indemnity have lost 18.8% in a year against the industry’s increase of 30.9%. ERIE presently carries a Zacks Rank #5 (Strong Sell).
Given the solid capital level of the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like The Hanover Insurance Group, Inc. (THG - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Primerica, Inc. (PRI - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
The board of directors of The Hanover Insurance Group approved a 7% hike in its quarterly dividend, reflecting operational excellence and commitment to return value to its shareholders. THG’s dividend witnessed an 11-year CAGR of 10.5%.
Prudent management of business mix, focus on the growth of the most profitable product lines, stable retention, better pricing and strong market presence should support The Hanover Insurance has maintained the streak of raising dividends each year.
The board of directors of AXIS Capital approved a 2.4% hike in its annual dividend in its continued effort to boost shareholders’ value backed by balance sheet strength.
AXIS Capital should be able to continually enhance shareholder value, riding on Specialty Insurance, Reinsurance plus Accident and Health, exiting underperforming lines, investing in more attractive markets, and entering new markets, thus improving portfolio mix and underwriting profitability.
The board of directors of Primerica authorized a $275 million share buyback program through next year. Operational excellence backed by solid market presence, growing business and a strong business model should continue to support Primerica in generating enough capital to return to shareholders continually.
Primerica’s total stockholder return has continually outperformed the S&P 500 Index over the last five years. It has also raised dividends 10 times in the last nine years.
Shares of The Hanover Insurance Group, Axis Capital and Primerica have gained 12.2%, 0.9% and 11.7% in a year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here