40 cents increase in dividend should be worth $ 5 a share
Stock price should be at least $50 a share. With a annual payout of $2.40 a share, even at $50 Safety would be yielding 4.8%. At the current price, we are at 5.5% yield with a company that is growing revenues and is a likely buyout target.
My gut feeling is that we will see some substantial growth in the number of auto units fairly soon as Safety replaces Commerce in the eyes of agents. MAPRE seems to be doing some consolidation with the US business and Safety will benefit from any tightening by Commerce. Commerce is still tough competition but they're not your grandfather's Commerce.