RLI Corp. (NYSE:RLI) Shareholders to Collect $3.00 Special Dividend

Key Points

• RLI declared a $3.00-per-share special dividend, payable December 7 to shareholders of record November 30; the ex-dividend date is also November 30.
• The insurer has increased its regular dividend for 51 consecutive years. Its annual dividend is $0.72, and the article says earnings comfortably cover the payout.
• RLI reported quarterly earnings of $0.86 per share, beating the $0.54 consensus estimate, while revenue of $476.96 million fell short of expectations. Analysts’ consensus rating was “Reduce,” with a $62.40 average price target.

RLI Corp. (NYSE:RLI - Get Free Report) announced a special dividend on Wednesday, November 11th. Investors of record on Monday, November 30th will be paid a dividend of $3.00 per share by the insurance provider on Monday, December 7th. The ex-dividend date is Monday, November 30th.

RLI has raised its dividend payment by an average of 0.2% per year over the last three years and has raised its dividend annually for the last 51 consecutive years. RLI has a dividend payout ratio of 22.6% meaning its dividend is sufficiently covered by earnings. Analysts expect RLI to earn $2.84 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 25.4%.

RLI Stock Performance

Shares of NYSE:RLI opened at $68.67 on Thursday. The company has a fifty day moving average of $61.26 and a 200-day moving average of $59.07. RLI has a 52-week low of $47.26 and a 52-week high of $71.89. The company has a market capitalization of $6.30 billion, a PE ratio of 19.91 and a beta of 0.31.

RLI (NYSE:RLI - Get Free Report) last issued its quarterly earnings results on Monday, October 19th. The insurance provider reported $0.86 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.32. RLI had a return on equity of 18.19% and a net margin of 20.34%. The company had revenue of $476.96 million during the quarter, compared to analysts' expectations of $533.51 million. During the same quarter in the prior year, the firm posted $0.83 earnings per share. On average, equities analysts forecast that RLI will post 3.21 EPS for the current fiscal year.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Jefferies Financial Group cut shares of RLI from a "hold" rating to an "underperform" rating and set a $53.00 target price on the stock. in a report on Tuesday, August 25th. Weiss Ratings upgraded RLI from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, August 28th. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $74.00 price target (up from $69.00) on shares of RLI in a report on Wednesday, October 21st. Finally, UBS Group set a $74.00 price target on RLI in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, RLI currently has an average rating of "Reduce" and a consensus target price of $62.40.

RLI Company Profile

RLI Corp. is a specialty insurance company that provides property, casualty and surety coverage through its subsidiaries. Its products serve businesses and individuals whose insurance needs may require specialized underwriting. The company offers commercial liability and property insurance, personal umbrella coverage, and surety bonds, among other products. RLI distributes its policies primarily through independent agents and brokers and serves customers across the United States. Founded in 1965, RLI began by providing replacement-cost coverage for mobile homes before expanding into a broader range of specialty insurance markets.

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