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OneBeacon Insurance Group, Ltd. Message Board

  • snogreen snogreen Mar 18, 2011 12:18 PM Flag

    Wow. JPM vs OB dividend

    J.P. Morgan just anoundced they are now raising their dividend to 25 cents a share, quarterly.

    JPM stock is up $1.50 on the news, to over $46.00.

    OB pays at 21 cent quarterly dividend. OB stock is about $13.18. and OB sells at bok value, similar to JPM as well.

    So which is a better dividend play? OB is a $13 stock that pays a dividend a few cents less than JPM. But JPM is a $46 stock to get that 25 cent dividend. OB is a $13 stock to get that 21 cent dividend.

    If the first Q numbers for OB are good and it is ALL specialty lines now, and a below 100 combined ratio.....selling at basically book value.....also selling at 10 times earnings.....and paying JUST ABOUT THE SAME DIVIDEND AS $46.00 JPM????

    Upgrades are a' coming.

    I am surprised the hedgies aren't onto this one. Lever up your margin buying at VERY low rates and triple up on OB paying 6.4%.That's like a 14 - 15% annual return. I know for a fact many hedgies are doing that strategy....but they buy the high paying MLP's in the energy area. But it will work on OB too.

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