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The board of directors of Willis Towers Watson Public Limited Company recently hiked quarterly dividend by 5%.
The company will now pay out a quarterly dividend of 68 cents per share compared with 65 cents paid out on Jan 15, 2020. The increased dividend will be paid out on Apr 15, 2020 to shareholders of record as of Mar 31.
Prior to this, the company had raised quarterly dividend by 8% to 65 cents per share in February 2019.
Notably, the company has consistently hiked its dividend with the metric witnessing a five-year CAGR (2014-2019) of 16.72%. However, the current dividend yield is 1.27%, lower than the industry average of 1.31%.
Willis Towers has been increasing its dividend since its formation in 2016, following the merger of Willis Group and Towers Watson. This effort made by the company should further help maintain it maintain its target dividend payout ratio.
Apart from dividend raises, Willis Towers engages in share buybacks to lower outstanding share count and boost its bottom line. In February, 2020, the board of directors approved a $251 million increase to the existing share repurchase program, increasing the total remaining authorization to $500 million.
As of Dec 31, 2019, approximately $249 million remained in its share repurchase authorization.
The insurance broker’s consistent endeavors to improve shareholders’ value make it an attractive stock pick for yield-seeking investors.
A sturdy financial position, backed by continued solid operational performance by core operations, enables the company to generate enough capital. This in turn positions it well to increase its payouts or engage in other shareholder-friendly moves. Willis Towers maintains a strong balance sheet and improved liquidity. The company estimates free cash-flow generation to be around $1 billion in 2020.
Shares of this Zacks Rank #3 (Hold) company have rallied 13.1%, underperforming the industry’s 23.7% increase. Nevertheless, the company's operational efficiencies, investment in new growth avenues and an effective capital deployment are expected to aid shares.
eHealth and Brown & Brown surpassed estimates in each of the last four quarters, with the average positive surprise being 182.77% and 7.97%, respectively.
Aon surpassed estimates in three of the last four quarters, with the average positive surprise being 0.62%
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Willis Towers Boosts Shareholder Value, Hikes Dividend
The board of directors of Willis Towers Watson Public Limited Company recently hiked quarterly dividend by 5%.
The company will now pay out a quarterly dividend of 68 cents per share compared with 65 cents paid out on Jan 15, 2020. The increased dividend will be paid out on Apr 15, 2020 to shareholders of record as of Mar 31.
Prior to this, the company had raised quarterly dividend by 8% to 65 cents per share in February 2019.
Notably, the company has consistently hiked its dividend with the metric witnessing a five-year CAGR (2014-2019) of 16.72%. However, the current dividend yield is 1.27%, lower than the industry average of 1.31%.
Willis Towers has been increasing its dividend since its formation in 2016, following the merger of Willis Group and Towers Watson. This effort made by the company should further help maintain it maintain its target dividend payout ratio.
Apart from dividend raises, Willis Towers engages in share buybacks to lower outstanding share count and boost its bottom line. In February, 2020, the board of directors approved a $251 million increase to the existing share repurchase program, increasing the total remaining authorization to $500 million.
As of Dec 31, 2019, approximately $249 million remained in its share repurchase authorization.
The insurance broker’s consistent endeavors to improve shareholders’ value make it an attractive stock pick for yield-seeking investors.
A sturdy financial position, backed by continued solid operational performance by core operations, enables the company to generate enough capital. This in turn positions it well to increase its payouts or engage in other shareholder-friendly moves. Willis Towers maintains a strong balance sheet and improved liquidity. The company estimates free cash-flow generation to be around $1 billion in 2020.
Shares of this Zacks Rank #3 (Hold) company have rallied 13.1%, underperforming the industry’s 23.7% increase. Nevertheless, the company's operational efficiencies, investment in new growth avenues and an effective capital deployment are expected to aid shares.
Stocks to Consider
Some better-ranked stocks from the insurance broker industry are eHealth, Inc. (EHTH - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Aon plc (AON - Free Report) . While eHealth sports a Zacks Rank #1 (Strong Buy), Brown & Brown and Aon plc carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
eHealth and Brown & Brown surpassed estimates in each of the last four quarters, with the average positive surprise being 182.77% and 7.97%, respectively.
Aon surpassed estimates in three of the last four quarters, with the average positive surprise being 0.62%
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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