The Hartford Financial Services Group, Inc. (NYSE:HIG) Announces Dividend Increase – $0.52 Per Share

The Hartford Financial Services Group, Inc. (NYSE:HIG) announced a quarterly dividend on Thursday, October 24th, Zacks reports. Shareholders of record on Monday, December 2nd will be given a dividend of 0.52 per share by the insurance provider on Friday, January 3rd. This represents a $2.08 annualized dividend and a yield of 1.85%. The ex-dividend date is Monday, December 2nd. This is a boost from The Hartford Financial Services Group’s previous quarterly dividend of $0.47.

The Hartford Financial Services Group has increased its dividend payment by an average of 10.3% per year over the last three years and has raised its dividend every year for the last 11 years. The Hartford Financial Services Group has a dividend payout ratio of 16.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect The Hartford Financial Services Group to earn $11.45 per share next year, which means the company should continue to be able to cover its $1.88 annual dividend with an expected future payout ratio of 16.4%.

The Hartford Financial Services Group Stock Down 6.8 %

HIG stock traded down $8.20 during trading hours on Friday, hitting $112.26. The company’s stock had a trading volume of 2,956,001 shares, compared to its average volume of 1,382,046. The company has a quick ratio of 0.32, a current ratio of 0.32 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $32.89 billion, a PE ratio of 11.80, a price-to-earnings-growth ratio of 0.99 and a beta of 0.93. The Hartford Financial Services Group has a 12 month low of $68.92 and a 12 month high of $123.23. The stock has a 50 day moving average price of $116.27 and a two-hundred day moving average price of $106.81.

The Hartford Financial Services Group (NYSE:HIG) last posted its earnings results on Thursday, October 24th. The insurance provider reported $2.53 EPS for the quarter, topping the consensus estimate of $2.49 by $0.04. The company had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.62 billion. The Hartford Financial Services Group had a net margin of 11.44% and a return on equity of 21.20%. On average, equities research analysts expect that The Hartford Financial Services Group will post 10.02 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts recently commented on HIG shares. Keefe, Bruyette & Woods upped their target price on shares of The Hartford Financial Services Group from $120.00 to $133.00 and gave the company an “outperform” rating in a research note on Thursday, August 1st. Morgan Stanley decreased their price objective on shares of The Hartford Financial Services Group from $109.00 to $107.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 10th. JPMorgan Chase & Co. increased their price objective on shares of The Hartford Financial Services Group from $122.00 to $125.00 and gave the stock a “neutral” rating in a report on Friday. Royal Bank of Canada lifted their price objective on shares of The Hartford Financial Services Group from $105.00 to $115.00 and gave the stock a “sector perform” rating in a research note on Monday, July 29th. Finally, Wells Fargo & Company lifted their price objective on shares of The Hartford Financial Services Group from $122.00 to $134.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 17th. Ten research analysts have rated the stock with a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, The Hartford Financial Services Group currently has an average rating of “Moderate Buy” and a consensus target price of $120.76.

The Hartford Financial Services Group declared that its board has approved a stock buyback plan on Thursday, July 25th that authorizes the company to buyback $3.30 billion in shares. This buyback authorization authorizes the insurance provider to purchase up to 10.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

About The Hartford Financial Services Group

The Hartford Financial Services Group, Inc, together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers insurance coverages, including workers' compensation, property, automobile, general and professional liability, package business, umbrella, fidelity and surety, marine, livestock, accident, health, and reinsurance through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers.