Dividend boost was one cent. That's usually a bad sign when co's boost by a penny a quarter but these guys boosted a penny for the whole year. Comes under the heading of "can you spare it?"
I know it's better than nothing. I know it's certainly better than a cut. But it tells you that they're getting stretched on cash and they're doing as little as humanly possible to continue to maintain their "Dividend Achiever" status.
A number of fund hold ORI based on their track record of dividend hikes. If the Company broke the string of increases, all of these funds would have sold and there's already a fair amount of pressure on this stock.
All good comments but the real reason the company is going nowhere is that A Zucaro is still there and has no idea how to grow the company profitabily. Look at the quarterly conference call transcrips, it is all reaction, no ability on his part to plan ahead, he is deathly afraid of making a mistake so does nothing.
So did sell your position? and where do you see ORI it ever going to move up from here? Is is a good buy here or you think it will be a good buy below this level. for past few weeks this pos an't moving nOwHere?
I think I would have had more respect for them if they just held it steady but I understand why they did the deminimus increase.
I hold the 8.5% bonds they inherited with their purchase of PMA. I am still scratching my head as to why they haven't called them. I figure these bonds are costing them an incremental $1 million/yr in interest expense over bank debt or a similar new issue. I'm not complaining because I love the income but I am a bit confused.
I have a sneaking suspicion these guys are holding together some kind of house of cards but have nothing but circumstantial evidence.