American Financial Group, Inc. (NYSE:AFG) Raises Dividend to $0.97 Per Share

Key Points

• American Financial Group raised its quarterly dividend 10.2% to $0.97 per share, or $3.88 annualized, representing a 2.8% yield. The company has increased its dividend for 19 consecutive years.
• The dividend appears well covered, with a current payout ratio of 29.8% and analysts expecting a similar payout ratio of about 29.7% next year.
• AFG shares rose 1.0% to $138.09, while analysts maintained a generally cautious outlook: the stock carries a consensus “Hold” rating and a $156 average price target.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) declared a quarterly dividend on Thursday, October 1st. Stockholders of record on Thursday, October 15th will be given a dividend of $0.97 per share by the insurance provider on Friday, October 23rd. This represents a $3.88 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Thursday, October 15th. This is a 10.2% increase from American Financial Group's previous quarterly dividend of $0.88.

American Financial Group has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 19 years. American Financial Group has a dividend payout ratio of 29.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect American Financial Group to earn $11.85 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 29.7%.

American Financial Group Trading Up 1.0%

Shares of NYSE AFG traded up $1.33 during midday trading on Thursday, hitting $138.09. The stock had a trading volume of 323,311 shares, compared to its average volume of 516,661. The company has a quick ratio of 0.49, a current ratio of 0.49 and a debt-to-equity ratio of 0.38. American Financial Group has a 1-year low of $123.09 and a 1-year high of $150.02. The company has a market capitalization of $11.45 billion, a price-to-earnings ratio of 12.07 and a beta of 0.60. The company has a fifty day moving average price of $142.77 and a 200 day moving average price of $136.71.

American Financial Group (NYSE:AFG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The insurance provider reported $2.82 earnings per share for the quarter, beating analysts' consensus estimates of $2.32 by $0.50. American Financial Group had a net margin of 11.51% and a return on equity of 20.35%. The firm had revenue of $2.03 billion for the quarter, compared to analysts' expectations of $1.85 billion. During the same period in the previous year, the company posted $2.14 earnings per share. American Financial Group's revenue was up 5.5% compared to the same quarter last year. On average, analysts predict that American Financial Group will post 12.17 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on AFG. Wells Fargo & Company lifted their target price on shares of American Financial Group from $158.00 to $173.00 and gave the company an "overweight" rating in a report on Thursday, July 9th. Keefe, Bruyette & Woods increased their price target on American Financial Group from $148.00 to $153.00 and gave the company a "market perform" rating in a report on Tuesday, August 11th. Piper Sandler raised their price objective on American Financial Group from $140.00 to $156.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. Weiss Ratings upgraded American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen downgraded American Financial Group from a "buy" rating to a "hold" rating in a research report on Saturday, September 12th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $156.00.

About American Financial Group

American Financial Group, Inc is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group businesses, the company primarily provides property and casualty insurance products, with an emphasis on specialty commercial markets that require specialized underwriting expertise.

Its insurance offerings include coverage for commercial transportation, agriculture, workers' compensation, excess and surplus risks, environmental exposures, inland marine, and other niche industries.

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