Brown & Brown, Inc. (NYSE:BRO) Plans $0.17 Quarterly Dividend

Key Points

• Brown & Brown declared a quarterly dividend of $0.165 per share, payable on August 19 to shareholders of record on August 12. The annualized dividend implies a 1.0% yield.
• The company’s dividend appears well covered, with a 16.4% payout ratio and analyst estimates suggesting future earnings should support the current annual dividend. Brown & Brown has also increased its dividend modestly over the past three years.
• Brown & Brown recently reported strong quarterly results, beating EPS and revenue estimates, while shares were trading lower on the day of the report. The company also has significant institutional ownership and a recent insider purchase by a director.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) announced a quarterly dividend on Wednesday, July 22nd. Investors of record on Wednesday, August 12th will be paid a dividend of 0.165 per share by the financial services provider on Wednesday, August 19th. This represents a c) dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Wednesday, August 12th.

Brown & Brown has raised its dividend by an average of 0.1%annually over the last three years. Brown & Brown has a payout ratio of 16.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Brown & Brown to earn $4.87 per share next year, which means the company should continue to be able to cover its $0.66 annual dividend with an expected future payout ratio of 13.6%.

Brown & Brown Stock Down 1.9%

Shares of BRO opened at $65.39 on Thursday. The company's 50-day moving average price is $61.85 and its 200 day moving average price is $66.82. Brown & Brown has a 12-month low of $53.81 and a 12-month high of $104.25. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.52. The firm has a market cap of $22.16 billion, a P/E ratio of 21.03, a price-to-earnings-growth ratio of 3.08 and a beta of 0.60.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.03. Brown & Brown had a net margin of 17.94% and a return on equity of 12.94%. The company had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.89 billion. During the same quarter last year, the firm posted $1.29 earnings per share. Brown & Brown's revenue was up 35.4% compared to the same quarter last year. On average, sell-side analysts forecast that Brown & Brown will post 4.5 earnings per share for the current year.

Insider Transactions at Brown & Brown

In other Brown & Brown news, Director H Palmer Proctor, Jr. purchased 2,000 shares of the firm's stock in a transaction on Tuesday, May 5th. The stock was bought at an average price of $57.10 per share, with a total value of $114,200.00. Following the transaction, the director directly owned 47,621 shares of the company's stock, valued at approximately $2,719,159.10. This represents a 4.38% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 13.13% of the stock is currently owned by company insiders.

Institutional Trading of Brown & Brown

Several hedge funds have recently modified their holdings of BRO. ICONIQ Capital LLC raised its position in shares of Brown & Brown by 5.4% during the second quarter. ICONIQ Capital LLC now owns 2,110 shares of the financial services provider's stock worth $234,000 after purchasing an additional 109 shares during the period. Zacks Investment Management boosted its position in shares of Brown & Brown by 0.7% in the 3rd quarter. Zacks Investment Management now owns 17,854 shares of the financial services provider's stock valued at $1,675,000 after purchasing an additional 125 shares during the period. Private Trust Co. NA boosted its position in shares of Brown & Brown by 13.1% in the 4th quarter. Private Trust Co. NA now owns 1,147 shares of the financial services provider's stock valued at $91,000 after purchasing an additional 133 shares during the period. Moors & Cabot Inc. increased its stake in Brown & Brown by 2.1% in the 3rd quarter. Moors & Cabot Inc. now owns 6,805 shares of the financial services provider's stock worth $638,000 after purchasing an additional 142 shares in the last quarter. Finally, Independent Advisor Alliance increased its stake in Brown & Brown by 0.5% in the 4th quarter. Independent Advisor Alliance now owns 33,805 shares of the financial services provider's stock worth $2,694,000 after purchasing an additional 162 shares in the last quarter. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Brown & Brown Company Profile

Brown & Brown, Inc NYSE: BRO is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.

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