Shares of Symetra Financial Corporation SYA rose 1.15% on Mar 6 after the company announced a cash dividend of 11 cents per share, representing an increase of 10%.
The increased dividend will be paid on or about Mar 31 2015, to shareholders on record as of Mar 19, 2015.
The quarterly cash dividend is equivalent to an annual dividend of 44 cents per share, up from 40 cents paid previously. The new dividend will yield approximately 1.9% annually.
Symetra Financial has a consistent record of raising dividend payouts. The company’s last dividend hike was in March last year, when it approved a quarterly cash dividend of 10 cents per share, marking an increase of 10% from the previous dividend. The company also paid a special dividend of $1.30 per share in Oct 2014.
This dividend hike was announced after the company reported adjusted operating fourth-quarter income of 52 cents per share. The results surpassed the Zacks Consensus Estimate of 44 cents by 18.2% and also improved year over year by 23.8%.
Additionally, at the end of 2014, the company had a solid financial position with total assets worth $33 billion (up 9.5% from the 2013-end level) which included total investments of $30.6 billion (up 9.8% from 2013-end level) Such dividend hikes reflect the company’s focus on returning more profit to shareholders. This initiative not only retains investors’ confidence in the stock but also attracts new investors.
Currently, Symetra Financial carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the life insurance sector include American Equity Investment Life Holding Co. AEL, Universal American Corp. UAM and Voya Financial, Inc. VOYA. All these stocks hold a Zacks Rank #2 (Buy).
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