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HCI Group Rewards Shareholders With 7.1% Dividend Raise

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In a concerted effort to share more profits with shareholders, the board of directors of HCI Group, Inc. HCI has approved a 7.1% hike in its quarterly dividend. The company will now pay a quarterly dividend of 37.5 cents per share compared with 35 cents paid on Mar 16, 2018. Shareholders of record as of May 18 will be rewarded with this meatier dividend in their pockets on Jun 15, 2018.

Based on the closing share price of $41.03 as of Apr 17, 2018, increased payout translates into a dividend yield of 3.5%, better than the industry average of 2.5%.

Prior to this, in January 2017, the company raised its quarterly dividend by 17% to 35 cents per share. Historically, the company boasts a steady increase in dividends with the metric witnessing a five-year CAGR (2013-2018) of 10.8%.

The company has been paying dividends since November 2010 and the recent dividend hike represents the company’s eighth consecutive yearly increase, reflecting its sustained operational performance over a period of time.

The Zacks Rank #3 (Hold) property and casualty insurer (P&C) has been paying dividends for the last 33 quarters. The company’s solid financial status provides enough support to participate in investor-oriented measures like dividend hikes and share buyback authorization. The company currently has a share repurchase authorization worth $20 million for 2018.

Banking on a robust capital position with sufficient liquidity and strong cash flows, HCI Group has been consistently making efforts to improve long-term shareholder value and remain focused on sustained profitable growth. The company is well-poised for growth based on improving claims trends, higher investment yields and lower tax incidence.

Such steadfast endeavors raise optimism on the stock, making it an attractive pick for yield-seeking investors. Shares of the company have outperformed the industry year to date. The stock has surged 37.2% compared with the industry’s increase of 0.7%. We expect improving premiums, strategic programs and a sturdy balance sheet to drive the shares higher in the near term.


A favorable operational result and a robust capital status have prompted several insurers to share more profits with the respective shareholders. Last month, Horace Mann Educators Corporation HMN hiked its quarterly dividend by 3.6% while FBL Financial Group, Inc. FFG hiked the same by 4.5%. Prior to that in February, Willis Towers Watson Public Limited Company WLTW has raised its quarterly dividend by 13%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.    

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Willis Towers Watson Public Limited Company (WLTW) : Free Stock Analysis Report
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