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Everest Re (RE) Boosts Shareholder Value, Hikes Dividend

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Everest Re Group, Ltd.’s board of directors has approved an 11% hike in its quarterly dividend in bid to return more profits to stockholders. The company will now make a quarterly payout of $1.55 per share compared with $1.40 per share paid on Aug 21, 2019. Shareholders of record as of Dec 4 will be rewarded with this dividend on or before Dec 24, 2019.

Prior to this, the company raised quarterly dividend by 8% to $1.40 per share last November. Historically, it boasts a consistent increase in dividends with the metric witnessing a five-year CAGR (2013-2018) of 23.9%. Its current dividend yield is 2.1%, which compares favorably with the industry average of 0.4%.

Everest Re has been increasing its payout each year and the recent dividend hike highlights its commitment toward a prudent capital management. This is a testament to Everest Re’s sustained operational performance over a period of time. In fact, the dividends paid to shareholders have increased 2.7x since third-quarter 2013.

The company’s solid financial status provides enough support to engage in shareholder-friendly moves like dividend hikes and share buyback authorization. Since 2006, the company has successfully returned $3.4 billion to shareholders.

Driven by a robust capital position and long-term operating performance, the property and casualty (P&C) insurer has been making consistent efforts to improve its long-term shareholder value and focus on sustained growth. Everest Re’s consistent share buyback is also driving the bottom line.

Shares of this Zacks Rank #3 (Hold) P&C insurer have outperformed the industry year to date. The stock has gained 22.9% compared with the industry’s growth of 9.2%. We expect a robust product portfolio, strategic initiatives, better investment results and a solid capital position to drive the shares in the near term.

Recently, the board members of Assurant, Inc. (AIZ - Free Report) approved a 5% hike in its quarterly dividend. The company will now pay a quarterly dividend of 63 cents per share compared with 60 cents paid on Sep 16, 2019.

Stocks That Warrant a Look

Some better-ranked stocks from the same space are Donegal Group Incorporation (DGICA - Free Report) and RLI Corporation (RLI - Free Report) , both sporting a Zacks Rank # (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Donegal Group Incorporation provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. The company beat estimates in the trailing four quarters by 248.34%, on average.

RLI Corporation underwrites property and casualty insurance in the United States and internationally. The company beat estimates in the trailing four quarters by 154.89%, on average.

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