The board of directors of Brown & Brown Inc. BRO recently approved a 10.2% hike in its quarterly dividend. The company will now reward shareholders with a dividend of 13.50 cents per share as against 12.25 cents paid on Aug 17, 2016.
The increased dividend will be paid on Nov 9, to the shareholders on record as of Oct 28, 2016. Based on the closing price of $37.61 on Oct 12, the increased dividend translates to a yield of 1.32%.
The insurance broker remains focused on boosting shareholder value through dividend increases as well as share buybacks. With respect to dividend, the company has increased its payout each year. The latest hike marks the 23rd annual dividend increase by the company. Notably, the dividend has increased at a five-year growth of 7.6%. The last dividend hike was announced on Oct 19, 2015, when the company raised the payout by 11.4% to 12.25 cents.
Brown & Brown’s strong operational performance has enabled it to generate solid cash flows and undertake strategic initiatives and engage in such shareholder-friendly moves. Based on the 139.9 million shares outstanding as of Jun 30, 2016, Brown & Brown requires $18.9 million for the payment of the quarterly dividend.
Currently, Brown & Brown carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the insurance industry include Everest Re Group Ltd. RE, NMIH Holdings, Inc. NMIH and Health Insurance Innovations, Inc. HIIQ. Each of these stocks holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Everest Re Group, a P&C insurer, delivered positive surprises in three of the last four quarters, with an average beat of 16.54%.
NMIH Holdings, another P&C insurer, delivered positive surprises in all of the last four quarters, with an average beat of 60.42%.
Health Insurance Innovations, a life insurer, delivered positive surprises in all of the last four quarters, with an average beat of 262.50%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want 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
To read this article on Zacks.com click here.
Zacks Investment Research