AFG to Pay Special Dividend - Analyst Blog
07 12월 2012 - 7:20PM
Zacks
Recently, American Financial Group, Inc. (AFG)
declared a special dividend of 25 cents per share payable on
December 24, 2012 to shareholders of record as of December 17,
2012. This implies a dividend yield of 0.63%, based on the closing
price of $39.97 as of December 6, 2012.
This one-time cash dividend will lead to an expenditure of $23
million for American Financial. However, the company generated
operating cash flows of $487 million in the first nine months of
2012, which is more than adequate to cover the expenditure for the
special dividend. Moreover, the company’s cash and cash equivalents
surged 22.8% year over year to $1.63 billion as of September 30,
2012.
American Financial’s sturdy financials and future prospects
enable it to return capital to shareholders via dividends and share
repurchases, thereby boosting shareholders’ confidence in the
stock. Moreover, efficient capital management helps the company
sustain its risk-adverse capital structure, while maintaining
adequate capital flexibility required for growth.
American Financial consistently returns value to shareholders.
Apart from paying dividends regularly, the company has a track
record of raising its dividend each year.
In October this year, the company announced an 11.4% hike in its
regular quarterly dividend to 19.5 cents from 17.5 cents paid
earlier. The increased dividend was paid on October 25 to
shareholders of record as of October 15. Even in October 2011, the
company approved an 8% dividend hike to 17.5 cents from 16.25
cents.
American Financial currently carries a Zacks #3 Rank (Hold). We
maintain a long-term ‘Neutral’ recommendation on the stock. The
company’s peer in the property and casualty business –
Cincinnati Financial Corp. (CINF) – carries a
Zacks #2 Rank (Buy).
AMER FINL GROUP (AFG): Free Stock Analysis Report
CINCINNATI FINL (CINF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
American Financial (NYSE:AFG)
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American Financial (NYSE:AFG)
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부터 7월(7) 2023 으로 7월(7) 2024