The Travelers Companies, Inc. (NYSE:TRV) Shareholders to Collect $1.25 Quarterly Dividend

Key Points

• Travelers declared a quarterly dividend of $1.25 per share, payable December 31 to shareholders of record December 10. The payment equals $5.00 annually and yields approximately 1.3%, marking 21 consecutive years of dividend increases.
• The insurer reported quarterly earnings of $9.18 per share, beating analyst expectations of $7.39, while revenue reached $12.41 billion versus the $11.36 billion consensus estimate.
• Travelers shares rose 1.2% to $388.66, near their 12-month high, and institutional investors own 82.45% of the stock; insiders have sold 58,667 shares worth about $21.8 million over the past 90 days.

The Travelers Companies, Inc. (NYSE:TRV - Get Free Report) announced a quarterly dividend on Friday, October 16th. Shareholders of record on Thursday, December 10th will be given a dividend of $1.25 per share by the insurance provider on Thursday, December 31st. This represents a $5.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, December 10th.

Travelers Companies has increased its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend annually for the last 21 consecutive years. Travelers Companies has a payout ratio of 20.3% indicating that its dividend is sufficiently covered by earnings. Analysts expect Travelers Companies to earn $30.17 per share next year, which means the company should continue to be able to cover its $5.00 annual dividend with an expected future payout ratio of 16.6%.

Travelers Companies Stock Up 1.2%

Shares of NYSE TRV traded up $4.77 during midday trading on Friday, hitting $388.66. 3,194,752 shares of the company's stock were exchanged, compared to its average volume of 1,644,766. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.33 and a quick ratio of 0.33. Travelers Companies has a twelve month low of $261.87 and a twelve month high of $398.70. The company has a market cap of $81.06 billion, a PE ratio of 10.41, a P/E/G ratio of 2.92 and a beta of 0.43. The firm's fifty day simple moving average is $368.89 and its 200-day simple moving average is $337.13.

Travelers Companies (NYSE:TRV - Get Free Report) last posted its earnings results on Friday, October 16th. The insurance provider reported $9.18 earnings per share for the quarter, topping the consensus estimate of $7.39 by $1.79. The firm had revenue of $12.41 billion during the quarter, compared to analysts' expectations of $11.36 billion. Travelers Companies had a return on equity of 25.41% and a net margin of 16.95%. The firm's revenue was down .5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $8.14 earnings per share. Research analysts predict that Travelers Companies will post 34.25 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Michael Klein sold 6,000 shares of the firm's stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $366.09, for a total transaction of $2,196,540.00. Following the transaction, the executive vice president owned 45,125 shares of the company's stock, valued at $16,519,811.25. This trade represents a 11.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Daniel Yin sold 7,153 shares of the business's stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $387.00, for a total value of $2,768,211.00. Following the completion of the transaction, the executive vice president owned 68,834 shares in the company, valued at $26,638,758. This trade represents a 9.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 58,667 shares of company stock valued at $21,830,989. 1.39% of the stock is owned by insiders.

Institutional Trading of Travelers Companies

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Travelers Companies during the second quarter worth approximately $6,915,909,000. Dimensional Fund Advisors LP lifted its holdings in shares of Travelers Companies by 3.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,484,676 shares of the insurance provider's stock worth $1,016,433,000 after purchasing an additional 123,564 shares during the period. Bank of America Corp DE purchased a new position in Travelers Companies in the 2nd quarter valued at $932,142,000. GQG Partners LLC purchased a new position in Travelers Companies in the 2nd quarter valued at $789,024,000. Finally, Legal & General Group Plc acquired a new position in Travelers Companies in the 2nd quarter valued at $558,164,000. 82.45% of the stock is owned by institutional investors and hedge funds.

Travelers Companies Company Profile

Travelers Companies, Inc is an insurance provider that offers property and casualty coverage to individuals, businesses and organizations. The company operates through three primary segments: Personal Insurance, Business Insurance, and Bond & Specialty Insurance.

Its products and services include automobile and homeowners insurance, workers' compensation, commercial property and casualty coverage, general and professional liability insurance, surety and fidelity bonds, and specialized insurance solutions for industries and businesses with complex risks.

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