Assurant Boosts Shareholders' Value Via Dividend Hike of 11%

Assurant, Inc.’s AIZ board of directors recently approved an 11% hike in cash dividend to 80 cents, up from 72 cents paid earlier. As of the close of business on Dec. 30, 2024, shareholders will receive the quarterly dividend on Dec. 9.AIZ’s distribution of wealth to shareholders via dividend hikes is impressive. The recent hike marks the insurer increasing dividends for straight 20 quarters and currently yielding 1.5%. This move to distribute wealth to its shareholders bears testimony to AIZ’s solid capital position, and uninterrupted cash generation capabilities on the strength of Global Lifestyle and Global Housing business segments. The insurer uses the cash inflows primarily to make dividend payments to stockholders, repurchase shares and fund investments and acquisitions. Besides the regular dividend hike, Assurant remains committed to returning excess cash to shareholders through share repurchases. Through the first nine months of 2024, the insurer bought back shares worth $180 million. As of Sept. 30, 2024, there remains $494.5 million worth of shares buyback in its authorization kitty. Assurant expects to return $300 million to shareholders through share repurchases in 2024, reflecting a strong capital position and a comprehensive catastrophe reinsurance program.  AIZ exited the third quarter with liquidity of $638 million, which was $411 million higher than the current targeted minimum level of $225 million.This Zacks Rank #3 (Hold) multi-line insurer expects to deploy capital primarily to support business growth by funding investments, mergers and acquisitions and returning capital to shareholders through share repurchases and dividends. Shares gained 30.8% year to date, outperforming the industry's increase of 20.7%.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchOther Shareholder-Friendly Moves in the Insurance SpaceGiven a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like Fidelity National Financial, Inc. FNF, American Financial Group AFG and Selective Insurance Group, Inc. SIGI have resorted to effective capital deployment to enhance shareholders’ value.Fidelity National’s board of directors approved a 9.1% hike in cash dividend to 50 cents. The company enjoys a scale advantage, given its market-leading position in residential purchase, refinance and commercial markets. It is investing in technology to widen its market-leading position.Solid retail annuity sales and F&G's presence in institutional markets benefit assets under management. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings. These positives should help the title insure retain the dividend hike streak.In November 2024, American Financial declared a special cash dividend of $4.00 per share in the third quarter, the aggregate amount of this special dividend will be approximately $335 million. American Financial Group’s 2.3% dividend yield is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.The board of directors of Selective Insurance authorized a 9% increase in the quarterly cash dividend to 38 cents per share in October 2024. Such steadfast endeavors buoy confidence among investors, making it an attractive pick for yield-seeking investors. Its dividend yield of 1.4% appears attractive compared with the industry average of 0.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assurant, Inc. (AIZ): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI): Free Stock Analysis Report Fidelity National Financial, Inc. (FNF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks