In a concerted effort to share more profits with shareholders, Horace Mann Educators Corporation HMN board of directors has approved a 1% hike in its quarterly dividend. The company will now make a quarterly payout of 28.75 cents per share compared with 28.5 cents paid on Dec 31, 2018. Shareholders of record as of Mar 18 will be rewarded with this meatier dividend on Mar 29, 2019.
Notably, this increased dividend denotes an annualized payout of $1.15 per share. Further, based on the abovementioned payout, the company’s current dividend yield is 2.9%, slightly better than the sector average of 2.2%.
Prior to this, in December 2017, the company raised its quarterly dividend by 3.6% to 27.5 cents per share. The company boasts a track record of dividend increases, which witnessed a six-year CAGR of 6.7%.
The latest dividend hike marks the company’s 11th consecutive year of dividend increase, reflecting the Multi line insurer’s strong financial position in turn. The company has been focused on building a long-term shareholder value supported by its solid financial foundation and operational excellence. This in turn, will continue to generate excess capital for the company, thereby providing it with enough support to engage in shareholder-friendly moves like dividend hikes, special dividends and share buyback authorization.
The company will also be fulfilling the need to maintain maximum capital flexibility for its pending buyout of National Teachers Associates (NTA) that is expected to be completed in mid-2019. Horace Mann is optimistic about the accelerated shareholder value creation, which could possibly be achieved after the completion of the transaction.
Banking on a robust capital position with sufficient liquidity and strong cash flows, Horace Mann has been consistently making efforts to improve its long-term shareholder value and is focused on sustained profitable growth.
Such steadfast endeavors instill confidence in investors, making the stock an attractive pick for yield-seeking investors.
Recently, Assured Guaranty Ltd. AGO approved a dividend hike of 12.5% and will now make a payout of 18 cents per share. Also, FBL Financial Group, Inc. FFG has cleared a 4.3% hike in its quarterly dividend.
This apart, the board of directors of Chubb Limited CB have announced that it will propose a 2.7% increase in annual dividend at the company’s annual general meeting.
Shares of Horace Mann have lost 9.5% in a year’s time, narrower than the industry’s decrease of 11.6%. However, we expect higher premiums, expanding Life sales volume and a solid capital position to turn the stock around and bump it up higher in the near term.
Stock to Consider
Investors interested in a stock worth considering from the insurance industry can consider Arch Capital Group Ltd. ACGL, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch Capital Group provides property, casualty and mortgage insurance and reinsurance products worldwide. The company delivered positive surprises in all the last four reported quarters, the average being 14.72%.
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Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report
FBL Financial Group, Inc. (FFG) : Free Stock Analysis Report
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Chubb Limited (CB) : Free Stock Analysis Report
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