Brown & Brown, Inc. (NYSE:BRO) Increases Dividend to $0.18 Per Share

Key Points

• Brown & Brown increased its quarterly dividend 9.1% to $0.18 per share, payable November 11 to shareholders of record November 4. The new annualized dividend is $0.72, yielding approximately 1.0%.
• The dividend appears well covered, with a 16.4% payout ratio and analysts expecting a future payout ratio of about 13.5% based on projected earnings.
• Brown & Brown shares rose 4.3% to $73.57, despite the company’s latest quarterly earnings and revenue falling slightly short of analyst expectations; revenue nevertheless increased 30.4% year over year.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) declared a quarterly dividend on Wednesday, October 21st. Stockholders of record on Wednesday, November 4th will be paid a dividend of $0.18 per share by the financial services provider on Wednesday, November 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Wednesday, November 4th. This is a 9.1% increase from Brown & Brown's previous quarterly dividend of $0.1650.

Brown & Brown has increased its dividend by an average of 0.1% per year over the last three years. Brown & Brown has a dividend payout ratio of 16.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Brown & Brown to earn $4.90 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 13.5%.

Brown & Brown Stock Up 4.3%

Shares of Brown & Brown stock traded up $3.04 during midday trading on Thursday, reaching $73.57. 200,883 shares of the company's stock traded hands, compared to its average volume of 2,912,984. The company has a market cap of $24.62 billion, a price-to-earnings ratio of 23.17, a price-to-earnings-growth ratio of 2.21 and a beta of 0.60. The company's 50 day simple moving average is $67.15 and its 200 day simple moving average is $65.02. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.11 and a current ratio of 2.11. Brown & Brown has a 52 week low of $53.81 and a 52 week high of $90.46.

Brown & Brown (NYSE:BRO - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.01). The business had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.71 billion. Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The firm's revenue for the quarter was up 30.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.03 EPS. Equities analysts expect that Brown & Brown will post 4.49 earnings per share for the current fiscal year.

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.

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