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HCI Group (HCI) Rewards Investors with 17% Dividend Hike

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In an effort to share more profit with investors, the board of directors of HCI Group, Inc (HCI - Free Report) recently increased its dividend by 16.7%. The company will now pay a quarterly dividend of 35 cents per share as against 30 cents paid last December.

Shareholders on record as of Feb 17 will have the meatier dividend in their pockets on Mar 17, 2017 Based on the closing share price of $39.27 as of Jan 17, the increased payout translates to a dividend yield of 3.6%, better than the industry average of 2.58%. HCI Group has initiated dividend payment in Nov 2010, and since then has hiked its dividend seven times. We note that the company has been paying dividends for 24 straight quarters. The dividend has grown at a six-year CAGR of 66%.

This apart, the company has been paying special dividends and engaging in share buybacks. The insurer’s solid operational performance is responsible for its sturdy financial position and should enable it to continue supporting dividend payouts going forward. The company has a track of 36 consecutive quarters of profitability.

Shares of HCI Group has outperformed the Zacks categorized Property, Casualty and Title Insurance industry in the last three months. While Argo Group shares appreciated 35.6%, the industry gained 9.6%.


Dividend hikes not only testify to the operational and financial strength of a company, but also make a stock attractive for yield-seeking investors. Last quarter, the board of directors of American Equity Investment Life Holding Company (AEL - Free Report) increased its dividend by 9%, while Assurant, Inc. (AIZ - Free Report) raised its dividend by 6%. Everest Re Group, Ltd. approved a 9% hike in its quarterly dividend, while RLI Corp. (RLI - Free Report) announced a special dividend of $2.00 to enhance shareholders’ value.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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