UVE has $250 million in cash. They can get higher mutual fund interest with higher div and ultimate higher PPS.
Can't wait to see 4th qtr earnings and 2010 strategy, if they have one.
Why would you want a dividend increase (or dividend at all)? I don't mind getting an 8-9% dividend, but if you believe management should should allocate capital to increase shareholder value, a large dividend doesn't make much since to me. If management has nothing better to do with the cash, it should be paid out. But if management can buyback it's own shares at a significant discount to intrinsic value I would prefer this route. Then throw in the tax advantages and it becomes a no-brainer. They are giving you US dollars, that are sure to be worth far less in the future, then you have to pay 1/3 of that currency to the government. If they bought back shares you would be buying dollars for far less than a dollar and you would have to let the govt in on the deal.
I've seen more buybacks go awry than most actions by management.
In UVE's case, they have such a small float to begin with so why buy shares off the market to decrease it further?
Many stock buybacks do nothing but enrich insiders getting huge stock options. The float never seems to change and neither does the SP. As an investor, you're stuck holding a security that is a smaller piece of the pie.
Give me some growth and a nice dividend and I'll be happy all day.
If you hold the shares in you retirement plan, you can postpone or eliminate the tax burden all together.
rtylinski, obviously you have lost your mind!!! or lack the fundemental skills of math! .12 on a 6.00 share price...I think that isnt to bad I mean 8+% and typically they will boost it at year end like they just did. I guess company's such as GE, and Bank of America would better suit you with there higher share price and divvy slashing this past year!!...here is a thought maybe you should sell all your holdings in UVE as it is obviously not to your return on investment standards. Your a moron, and I have realized you are not worth my time to write this reply. Good luck in life
I guess the board needs a lesson in how to build shareholder value. paying 20 cents a qtr does not impact their cash flow needs.
If they can sustain 20 cents a qtr the price will zoom to $8 easily.
They can iissue more shares at $8 and support an acquisition strtategy.