The board of directors of Chubb Limited (NYSE:CB) hiked the company’s quarterly dividend by 3% in its efforts to share more profit with shareholders. The company will now pay a quarterly dividend of 69 cents per share, up from 67 cents paid earlier. Shareholders of record on Jun 30 will have the meatier dividend in their pockets on Jul 21, 2016.
The annualized dividend of $2.76 per share yields 2.1% based on yesterday’s closing price of $124.85. Chubb Limited has an impressive track of raising dividend each year and has been paying dividend each quarter since it became a public company in 1993. The latest increase marked the twenty-third straight year of dividend hike.
This Zacks Rank #3 (Hold) property and casualty insurer has raised its dividend by about 47% over the last five years, with its yield outperforming the sector average. Chubb intends to pay around 30% of its operating earnings to its shareholders.
A sturdy financial position backed by continued solid operational performance positions it well for such capital deployment. Chubb’s efficient capital deployment that in turn enhances shareholder value makes it an attractive pick for yield-seeking investors.
Several insurers are treading the same path as Chubb. These insurers foresee dividend hike as a strategy to retain investor confidence as well as attract new investors. Recently, the board of directors of Marsh & McLennan Companies Inc. (NYSE:MMC) increased the company’s quarterly dividend by 9.7% while that of United Fire Group Inc. (NASDAQ:UFCS) recently approved a dividend hike of 13.6% in quarterly dividend. In April, the board of directors of The Travelers Companies Inc. (NYSE:TRV) approved a dividend hike of 10%.
MARSH &MCLENNAN (MMC): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
CHUBB LTD (CB): Free Stock Analysis Report
Original post
Zacks Investment Research
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Chubb Shares More Profit With Investors, Hikes Dividend
Published 05/19/2016, 09:22 PM
Updated 07/09/2023, 06:31 AM
Chubb Shares More Profit With Investors, Hikes Dividend
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