American Financial Group, Inc. (NYSE:AFG) Plans $0.88 Quarterly Dividend

Key Points

• American Financial Group announced a $0.88 quarterly dividend (annualized $3.52) payable April 24 to shareholders of record April 15, with an ex-dividend date of April 15, implying a yield of about 2.7%.
• The company has raised its dividend every year for the last 19 years and carries a payout ratio around 29.8%, with analysts' earnings forecasts keeping the forward payout near 30%, suggesting the dividend is well covered.
• AFG recently beat quarterly estimates (EPS $3.65 vs. $3.18; revenue $2.06B vs. $1.79B), while analysts maintain an average rating of "Hold" with an average price target of $144.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) announced a quarterly dividend on Wednesday, April 1st. Stockholders of record on Wednesday, April 15th will be paid a dividend of 0.88 per share by the insurance provider on Friday, April 24th. This represents a c) annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Wednesday, April 15th.

American Financial Group has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 19 years. American Financial Group has a payout ratio of 29.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect American Financial Group to earn $11.68 per share next year, which means the company should continue to be able to cover its $3.52 annual dividend with an expected future payout ratio of 30.1%.

American Financial Group Trading Down 0.0%

American Financial Group stock opened at $130.65 on Monday. The stock has a 50-day moving average price of $129.42 and a 200 day moving average price of $133.76. American Financial Group has a 52 week low of $120.52 and a 52 week high of $150.02. The stock has a market cap of $10.86 billion, a PE ratio of 12.97 and a beta of 0.69. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.38.

American Financial Group (NYSE:AFG - Get Free Report) last released its earnings results on Wednesday, February 4th. The insurance provider reported $3.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.18 by $0.47. American Financial Group had a net margin of 10.30% and a return on equity of 18.64%. The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $1.79 billion. During the same period in the prior year, the firm earned $3.12 EPS. The firm's quarterly revenue was down 4.0% on a year-over-year basis. Equities research analysts predict that American Financial Group will post 10.5 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several brokerages recently issued reports on AFG. Wells Fargo & Company reduced their price objective on shares of American Financial Group from $160.00 to $155.00 and set an "overweight" rating on the stock in a research note on Thursday. Weiss Ratings raised shares of American Financial Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 16th. Finally, Keefe, Bruyette & Woods increased their price target on American Financial Group from $134.00 to $140.00 and gave the stock a "market perform" rating in a research note on Wednesday, March 25th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, American Financial Group presently has an average rating of "Hold" and an average price target of $144.00.

American Financial Group Company Profile

American Financial Group, Inc NYSE: AFG is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.

The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.

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