MGIC Investment Corporation (NYSE:MTG) Plans Quarterly Dividend of $0.15

Key Points

• MGIC declared a quarterly dividend of $0.15 per share (annualized $0.60) with an ex-dividend date of May 6, payable May 21, implying a yield of about 2.1%.
• The company's Board approved a $750 million share repurchase program (up to 12.4% of outstanding shares), signaling management believes the stock may be undervalued.
• MGIC's dividend appears well-covered, with a historical payout ratio of about 19.7% and analysts forecasting ~$3.38 EPS next year (implying an expected payout ratio near 17.8%); the firm also recently beat quarterly EPS estimates.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) declared a quarterly dividend on Thursday, April 23rd. Investors of record on Wednesday, May 6th will be given a dividend of 0.15 per share by the insurance provider on Thursday, May 21st. This represents a c) annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, May 6th.

MGIC Investment has raised its dividend by an average of 0.2%per year over the last three years and has raised its dividend annually for the last 6 consecutive years. MGIC Investment has a dividend payout ratio of 19.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect MGIC Investment to earn $3.38 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 17.8%.

MGIC Investment Price Performance

NYSE MTG opened at $28.79 on Friday. The business's fifty day moving average is $26.68 and its 200 day moving average is $27.43. MGIC Investment has a fifty-two week low of $24.00 and a fifty-two week high of $29.97. The company has a market capitalization of $6.19 billion, a PE ratio of 9.17, a price-to-earnings-growth ratio of 2.24 and a beta of 0.79. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.52 and a current ratio of 1.52.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Monday, February 2nd. The insurance provider reported $0.75 EPS for the quarter, beating the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.During the same period in the prior year, the business earned $0.72 EPS. The firm's revenue for the quarter was down .9% compared to the same quarter last year. Sell-side analysts predict that MGIC Investment will post 3.08 earnings per share for the current year.

MGIC Investment declared that its Board of Directors has approved a stock buyback plan on Thursday, April 23rd that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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