American Financial Group, Inc. (NYSE:AFG) Shares to Pay Special Dividend of $3.50

Key Points

• American Financial Group declared a $3.50-per-share special dividend. Shareholders of record on November 16 are scheduled to receive payment on November 25; November 16 is also the ex-dividend date.
• The company has raised its dividend for 19 consecutive years, and its regular dividend is supported by a payout ratio of 32.8%.
• Quarterly earnings beat estimates: AFG reported $3.97 per share and $2.58 billion in revenue. Analysts’ consensus rating was “Hold,” with an average price target of $152.75.

American Financial Group, Inc. (NYSE:AFG - Get Free Report) announced a special dividend on Tuesday, November 3rd. Stockholders of record on Monday, November 16th will be given a dividend of $3.50 per share by the insurance provider on Wednesday, November 25th. The ex-dividend date is Monday, November 16th.

American Financial Group has increased its dividend by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 19 consecutive years. American Financial Group has a payout ratio of 32.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect American Financial Group to earn $11.98 per share next year, which means the company should continue to be able to cover its $3.88 annual dividend with an expected future payout ratio of 32.4%.

American Financial Group Stock Performance

AFG opened at $153.06 on Wednesday. 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 12-month low of $123.09 and a 12-month high of $156.24. The business has a 50 day moving average of $144.19 and a 200-day moving average of $136.64. The stock has a market cap of $12.69 billion, a price-to-earnings ratio of 13.34 and a beta of 0.55.

American Financial Group (NYSE:AFG - Get Free Report) last posted its earnings results on Wednesday, November 4th. The insurance provider reported $3.97 earnings per share for the quarter, topping analysts' consensus estimates of $3.80 by $0.17. American Financial Group had a return on equity of 20.35% and a net margin of 11.51%. The business had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same period in the previous year, the firm earned $2.69 EPS. On average, equities research analysts expect that American Financial Group will post 12.29 earnings per share for the current year.

Analyst Upgrades and Downgrades

AFG has been the topic of several research reports. Weiss Ratings upgraded shares of American Financial Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Wells Fargo & Company reduced their target price on shares of American Financial Group from $175.00 to $166.00 and set an "overweight" rating for the company in a report on Monday, October 12th. Piper Sandler upped their price target on shares of American Financial Group from $140.00 to $156.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Keefe, Bruyette & Woods lowered their price target on shares of American Financial Group from $153.00 to $147.00 and set a "market perform" rating on the stock in a report on Monday, October 12th. Finally, Wall Street Zen upgraded shares of American Financial Group from a "hold" rating to a "buy" rating in a research report on Saturday, October 17th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $152.75.

American Financial Group Company Profile

American Financial Group, Inc NYSE: AFG is an insurance holding company headquartered in Cincinnati, Ohio. Through its Great American Insurance Group operations, the company primarily provides property and casualty insurance, with an emphasis on specialty commercial products and markets.

Its insurance offerings serve businesses, organizations and individuals across a range of industries. Product lines have included commercial property and liability coverage, workers' compensation, transportation, agriculture and crop insurance, marine and other specialty risks.

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