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Unum Group (UNM) Rewards Shareholders With 10% Dividend Hike
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In its efforts to share more profit with shareholders, the board of directors of Unum Group (UNM - Free Report) approved a 10% increase in its dividend. With this, the payout now stands at 33 cents per share compared with 30 cents per share paid on May 22.
Based on the stock’s May 26 closing price of $35.97, the new dividend will yield 3.3%, better than the industry average of 2.7%. Shareholders will receive the meatier dividend in the third quarter of 2022.
Before this, Unum Group had increased dividends in 2021 by 5.3%. This recent dividend hike marked the 13th increase in the last 12 years. The dividend of this leading disability income writer and second-largest writer of the voluntary business in the United States witnessed an eight-year (2015-2022) CAGR of 9.1%. UNM’s conservative pricing, the growth of product lines and improving premiums, favorable benefits experience and a sturdy capital position should help the insurer retain momentum.
Over the last 11 years, Unum Group has prudently shifted its business mix by increasing the proportion of voluntary products, adding Dental and Vision and divesting Closed Disability Block. Management remains focused on moving to a mix of businesses with higher growth and stable margins.
Unum Group boasts a solid capital position. Sustained solid operating results have been fueling a solid level of statutory earnings and capital, cushioning financial flexibility. Strong statutory earnings might provide impetus to the strong dividend capacity. UNM also repurchases shares as part of its capital management strategy. In the first quarter of 2022, the insurer executed a $50-million accelerated share agreement and expects to repurchase approximately $200 million of shares for 2022.
Shares of this Zacks Rank #3 (Hold) insurer have rallied 46.4% year to date against the industry’s decline of 0.1%. High persistency levels, strong sales volumes and solid benefits experience should help it retain momentum.
Image Source: Zacks Investment Research
Given the solid capital level of the insurance industry and the improving operating backdrop favoring the strong operational performance, insurers like Everest Re Group, Ltd. , RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) have resorted to effective capital deployment to enhance shareholder value.
Everest Re approved a 6.4% hike in its quarterly dividend in May 2022. Everest Re has a dividend yield of 2.2%, better than the industry average of nearly 0.4%. RE is likely to benefit from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Driven by a robust capital position and long-term operating performance, the property and casualty insurer has been making consistent efforts to improve its long-term shareholder value and focus on sustained growth.
RLI approved a 4% hike in its quarterly dividend to enhance shareholder value in May 2022. RLI has a dividend yield of 0.8%, better than the industry average of nearly 0.4%. The insurer drives long-term sustainable growth for shareholders with the help of its product portfolio, the careful selection of niche markets, distribution partners and customers and the strength of its balance sheet, which, in turn, enable it to hike dividends regularly.
The Travelers Companies hiked its dividend by 6% in April 2022. The Travelers Companies has a dividend yield of 2%, better than the industry average of 0.4%. TRV maintains a conservative balance sheet among its peers. Banking on operational excellence and a solid capital position, the insurer has increased its dividend for the last 11 years.
Image: Bigstock
Unum Group (UNM) Rewards Shareholders With 10% Dividend Hike
In its efforts to share more profit with shareholders, the board of directors of Unum Group (UNM - Free Report) approved a 10% increase in its dividend. With this, the payout now stands at 33 cents per share compared with 30 cents per share paid on May 22.
Based on the stock’s May 26 closing price of $35.97, the new dividend will yield 3.3%, better than the industry average of 2.7%. Shareholders will receive the meatier dividend in the third quarter of 2022.
Before this, Unum Group had increased dividends in 2021 by 5.3%. This recent dividend hike marked the 13th increase in the last 12 years. The dividend of this leading disability income writer and second-largest writer of the voluntary business in the United States witnessed an eight-year (2015-2022) CAGR of 9.1%. UNM’s conservative pricing, the growth of product lines and improving premiums, favorable benefits experience and a sturdy capital position should help the insurer retain momentum.
Over the last 11 years, Unum Group has prudently shifted its business mix by increasing the proportion of voluntary products, adding Dental and Vision and divesting Closed Disability Block. Management remains focused on moving to a mix of businesses with higher growth and stable margins.
Unum Group boasts a solid capital position. Sustained solid operating results have been fueling a solid level of statutory earnings and capital, cushioning financial flexibility. Strong statutory earnings might provide impetus to the strong dividend capacity. UNM also repurchases shares as part of its capital management strategy. In the first quarter of 2022, the insurer executed a $50-million accelerated share agreement and expects to repurchase approximately $200 million of shares for 2022.
Shares of this Zacks Rank #3 (Hold) insurer have rallied 46.4% year to date against the industry’s decline of 0.1%. High persistency levels, strong sales volumes and solid benefits experience should help it retain momentum.
Image Source: Zacks Investment Research
Given the solid capital level of the insurance industry and the improving operating backdrop favoring the strong operational performance, insurers like Everest Re Group, Ltd. , RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) have resorted to effective capital deployment to enhance shareholder value.
Everest Re approved a 6.4% hike in its quarterly dividend in May 2022. Everest Re has a dividend yield of 2.2%, better than the industry average of nearly 0.4%. RE is likely to benefit from its capital adequacy, financial flexibility, long-term operating performance and traditional risk management capabilities. Driven by a robust capital position and long-term operating performance, the property and casualty insurer has been making consistent efforts to improve its long-term shareholder value and focus on sustained growth.
RLI approved a 4% hike in its quarterly dividend to enhance shareholder value in May 2022. RLI has a dividend yield of 0.8%, better than the industry average of nearly 0.4%. The insurer drives long-term sustainable growth for shareholders with the help of its product portfolio, the careful selection of niche markets, distribution partners and customers and the strength of its balance sheet, which, in turn, enable it to hike dividends regularly.
The Travelers Companies hiked its dividend by 6% in April 2022. The Travelers Companies has a dividend yield of 2%, better than the industry average of 0.4%. TRV maintains a conservative balance sheet among its peers. Banking on operational excellence and a solid capital position, the insurer has increased its dividend for the last 11 years.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.