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Hanover Insurance (THG) OKs Dividend Hike to Share More Profit
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The board of directors of The Hanover Insurance Group, Inc. (THG - Free Report) approved an 8% hike in its quarterly dividend in its continued effort to boost shareholder value. The payout now stands at 81 cents per share compared with the earlier payout of 75 cents per share.
Based on the Dec 5 closing price of $142.43, the new dividend will yield 2.3%, better than the industry average of 0.4%. With 35.6 million shares outstanding as of Sep 30, 2022, THG will have to pay $28.8 million as quarterly dividend. Shareholders of record on Dec 15, 2021 will receive the meatier dividend on Dec 30.
Banking on operational excellence, The Hanover Insurance has increased dividends each year, reflecting its commitment to return value to its shareholders. THG’s dividend witnessed a 10-year CAGR of 10.4%.
Prudent management of business mix, focus on the growth of the most profitable product lines, stable retention, better pricing and a strong market presence should support The Hanover Insurance maintain the streak.
The Hanover Insurance Group prudently deploys capital in profitable business initiatives and returns the excess capital to shareholders. Apart from dividend hikes, THG also engages in share buybacks. It had $330 million available under its authorization as of Sep 30, 2022.
Shares of The Hanover Insurance Group have gained 8.7% year to date compared with the industry’s increase of 4.8%. Operational excellence and a solid capital position should help shares retain momentum. THG currently carries a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Assurant Inc. (AIZ - Free Report) , American Financial Group (AFG - Free Report) and RLI Corporation (RLI - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2022, Assurant’s board approved a 2.9% hike in its quarterly dividend. The recent hike marked the 18th consecutive dividend increase by Assurant since its initial public offering in 2004. Effective capital deployment highlights AIZ’s commitment toward prudent capital management, reflecting its sustained operational performance and its sound financial prospects.
American Financial Group declared a special cash dividend of $2 per share, the aggregate of which will be nearly $170 million. American Financial Group’s 1.7% dividend yield betters the industry average of 0.4%, making the stock attractive for yield-seeking investors. AFG’s robust operating profitability in the property and casualty segment and effective capital management support shareholder returns.
In November 2022, the board of directors of RLI approved a special cash dividend of $7.00 per share, marking the 13th straight special dividend. RLI’s diversified product portfolio, a strong local branch-office network, a focus on specialty insurance line growth via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns. RLI has witnessed shareholders’ returns of 16.2% in the past 20 years, outperforming the S&P 500 and the S&P P&C Index.
Shares of RLI Corp have gained 15.4% year to date. Assurant and American Financial Group have lost 16.8% and 0.1%, respectively over the same time frame.
Image: Bigstock
Hanover Insurance (THG) OKs Dividend Hike to Share More Profit
The board of directors of The Hanover Insurance Group, Inc. (THG - Free Report) approved an 8% hike in its quarterly dividend in its continued effort to boost shareholder value. The payout now stands at 81 cents per share compared with the earlier payout of 75 cents per share.
Based on the Dec 5 closing price of $142.43, the new dividend will yield 2.3%, better than the industry average of 0.4%. With 35.6 million shares outstanding as of Sep 30, 2022, THG will have to pay $28.8 million as quarterly dividend. Shareholders of record on Dec 15, 2021 will receive the meatier dividend on Dec 30.
Banking on operational excellence, The Hanover Insurance has increased dividends each year, reflecting its commitment to return value to its shareholders. THG’s dividend witnessed a 10-year CAGR of 10.4%.
Prudent management of business mix, focus on the growth of the most profitable product lines, stable retention, better pricing and a strong market presence should support The Hanover Insurance maintain the streak.
The Hanover Insurance Group prudently deploys capital in profitable business initiatives and returns the excess capital to shareholders. Apart from dividend hikes, THG also engages in share buybacks. It had $330 million available under its authorization as of Sep 30, 2022.
Shares of The Hanover Insurance Group have gained 8.7% year to date compared with the industry’s increase of 4.8%. Operational excellence and a solid capital position should help shares retain momentum. THG currently carries a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Assurant Inc. (AIZ - Free Report) , American Financial Group (AFG - Free Report) and RLI Corporation (RLI - Free Report) have resorted to effective capital deployment to enhance shareholders’ value.
In November 2022, Assurant’s board approved a 2.9% hike in its quarterly dividend. The recent hike marked the 18th consecutive dividend increase by Assurant since its initial public offering in 2004. Effective capital deployment highlights AIZ’s commitment toward prudent capital management, reflecting its sustained operational performance and its sound financial prospects.
American Financial Group declared a special cash dividend of $2 per share, the aggregate of which will be nearly $170 million. American Financial Group’s 1.7% dividend yield betters the industry average of 0.4%, making the stock attractive for yield-seeking investors. AFG’s robust operating profitability in the property and casualty segment and effective capital management support shareholder returns.
In November 2022, the board of directors of RLI approved a special cash dividend of $7.00 per share, marking the 13th straight special dividend. RLI’s diversified product portfolio, a strong local branch-office network, a focus on specialty insurance line growth via organic opportunities and acquisitions, and financial strength should continue to help boost shareholders’ returns. RLI has witnessed shareholders’ returns of 16.2% in the past 20 years, outperforming the S&P 500 and the S&P P&C Index.
Shares of RLI Corp have gained 15.4% year to date. Assurant and American Financial Group have lost 16.8% and 0.1%, respectively over the same time frame.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.