It has been five years since the last special dividend in Dec 2005. I think that ORI is ready for another special dividend of at least $1.00. ORI has the reserves and its investments have done well. Both PMI and MTG are up quite a bit. I think it is time to reward the strong shareholder base before the change in the tax law. It only seems fair. I would love to hear the opinions of others on this message board.
What I love about this management team is their respect and careful investment of our capital. PMI and other investments will pay off in the long term with profitable cash flow. But, a hopeful run up in prices is not the same as getting our economy; especially homes, back to normal. The real question no one knows is the actual term of the term long term. If the Bush Tax rates not being extended is a very good reason for companies not to pay out cash. It is a significant portion of the Obama economic geshstalt that has caused American business to build and keep record cash balances. Insurance against all the uncertainly and lack of rational economic policy. The good news is this management team works to make sure the existing dividend is not reduced. The last token increase is appreciated for the signal it sends. Unfortunately I would not expect nor want any specials. It would signal no good acquisitions or book build is available even as our economy struggles at these low levels of activity. Everyone should have a few shares of ORI. Beating the market like a turtle is no accident but an embedded part of the corporate culture.