The Hartford Raises Dividend 50%, Increases Buyback Plan
Property and casualty insurance provider The Hartford announced today its third-quarter dividend of $0.15 per share, 50% higher than the payout it made to investors last quarter of $0.10 per share.
The board of directors said the quarterly dividend will be paid on Oct. 1 when it declares the next payout. The insurance provider has made quarterly payouts to investors since 1996.
The board also announced it is increasing the company's share repurchase plan by $750 million, bringing the total authorization, which expires Dec. 31, 2014, to $1.25 billion. Noting that to date the insurer has bought back only $166 million on the current program, it suggests Hartford may be preparing to repurchase a large slug of stock.
The Hartford Chairman, President, and CEO Liam E. McGee said: "... the next phase of The Hartford's capital management plan ... reflects our commitment to use excess capital for capital management actions and reinvestment in the businesses."
The regular dividend payment equates to a $0.60-per-share annual dividend, yielding 2.1% based on the closing price of The Hartford's stock on June 25.
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