Stewart Information Services Corporation (NYSE:STC) to Issue Dividend Increase - $0.55 Per Share

Key Points

• Stewart Information Services raised its quarterly dividend 4.8% to $0.55 per share, payable September 30 to shareholders of record on September 15. The annualized dividend yield is approximately 3.2%, and the company has increased its dividend for four consecutive years.
• The dividend appears well covered, with a current payout ratio of 32.7%; analysts expect next year’s earnings of $6.25 per share versus an annual dividend of $2.10.
• Shares fell 1.8% to $68.62 in mid-day trading. In its latest quarter, the company reported $1.39 in EPS—below the $1.63 estimate—while revenue rose 24.5% year over year to $895.8 million.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) announced a quarterly dividend on Monday, August 31st. Stockholders of record on Tuesday, September 15th will be given a dividend of 0.55 per share by the insurance provider on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, September 15th. This is a 4.8% increase from Stewart Information Services's previous quarterly dividend of $0.53.

Stewart Information Services has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 4 consecutive years. Stewart Information Services has a payout ratio of 32.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Stewart Information Services to earn $6.25 per share next year, which means the company should continue to be able to cover its $2.10 annual dividend with an expected future payout ratio of 33.6%.

Stewart Information Services Stock Down 1.8%

Shares of STC traded down $1.29 during mid-day trading on Monday, hitting $68.62. The company's stock had a trading volume of 143,995 shares, compared to its average volume of 227,744. The company's 50-day moving average is $68.26 and its 200-day moving average is $66.87. Stewart Information Services has a 52-week low of $57.10 and a 52-week high of $78.61. The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of 15.05 and a beta of 0.98. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39.

Stewart Information Services (NYSE:STC - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $1.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.63 by ($0.24). The business had revenue of $895.80 million for the quarter, compared to analysts' expectations of $838.07 million. Stewart Information Services had a net margin of 4.12% and a return on equity of 10.02%. The business's quarterly revenue was up 24.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.34 earnings per share. On average, equities research analysts forecast that Stewart Information Services will post 5.26 EPS for the current fiscal year.

About Stewart Information Services

Stewart Information Services Corporation NYSE: STC is a publicly traded provider of title insurance and real estate transaction services. The company underwrites title insurance policies for residential and commercial properties, offering lenders and property owners protection against title defects and liens. Beyond title insurance, Stewart delivers a range of ancillary services, including closing and escrow administration, property valuation, and risk mitigation solutions designed to streamline the mortgage process and reduce operational complexity for clients.

In addition to core title and settlement services, Stewart offers technology-driven products aimed at enhancing transparency and efficiency in real estate transactions.

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