FBL Financial Rewards Shareholders With 4.3% Dividend Hike


Date: 21.03.2019


In a concerted effort to share more profits with shareholders, the board of directors of FBL Financial Group, Inc. (FFG - Free Report) has approved a 4.3% hike in its quarterly dividend. The company will now make a quarterly payout of 48 cents per share compared with 46 cents paid on Dec 31, 2018.

Notably, the increased dividend denotes an annualized payout of $1.92 per share. Further, based on the abovementioned payout, the company’s current dividend yield is 2.8%, which is slightly better than the industry average of 2.4%.

Prior to this, last March, the company raised its quarterly dividend by 4.5% to 46 cents per share. The company boasts a track record of raising dividends that witnessed a six-year CAGR of 27.8%.

This apart, a special dividend has been announced amounting to $1.50 per share or about $37 million. This will mark the fifth special dividend payout by the company. Both regular and special dividends will be paid on Mar 29, 2019 to Class A and Class B shareholders of record as of Mar 15, 2019.

The Multi line insurer’s solid financial foundation and operational performance will continue to generate excess capital, thereby providing enough support to engage in shareholder-friendly moves like dividend hikes, special dividends and share buyback authorization. In 2018, the company successfully returned $99 million to its shareholders and since the IPO in 1996, the company’s shareholder return grew 1380%.

Banking on a robust capital position with sufficient liquidity and strong cash flows, FBL Financial has been consistently making efforts to improve its long-term shareholder value and is focused on sustained profitable growth.

Such steadfast endeavors instill confidence in investors, making the stock an attractive pick for yield-seeking investors.

Recently, Assured Guaranty Ltd. approved a dividend hike of 12.5% and will now make a payout of 18 cents per share.

Zacks Rank and Share Price Movement

FBL Financial carries a Zacks Rank #3 (Hold). Shares of the company have risen 5.4% year to date, underperforming the S&P 500 index’s gain of 11.4%. However, we expect an improving premium collected, better investment results, life sales growth and a robust financial position to drive the stock higher going forward.

Stocks to Consider

Investors interested in better-ranked stocks from the insurance industry can consider Arch Capital Group Ltd. (ACGL - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). 

Arch Capital Group provides property, casualty and mortgage insurance and reinsurance products worldwide. The company delivered positive surprises in all the last four reported quarters, the average being 14.72%.

Cincinnati Financial provides property and casualty insurance products in the United States. The company pulled off positive surprises in three of the trailing four reported quarters, the average earnings surprise being 18.08%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

Source: zacks.com


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