MGIC Investment Corporation (NYSE:MTG) to Issue Dividend Increase - $0.17 Per Share

Key Points

• MGIC Investment announced a quarterly dividend of $0.17 per share, up 13.3% from the prior $0.15 payment. Shareholders of record on August 5 will be paid on August 20, with an ex-dividend date of August 5.
• The new dividend implies an annualized yield of about 2.3%, and the company’s payout ratio remains low at 19.7%, suggesting the dividend is well covered by earnings.
• MGIC also reported recent earnings of $0.76 EPS, beating estimates, while analysts currently rate the stock Hold on average with a target price of $28.25.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Shareholders of record on Wednesday, August 5th will be given a dividend of 0.17 per share by the insurance provider on Thursday, August 20th. This represents a c) dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Wednesday, August 5th. This is a 13.3% increase from MGIC Investment's previous quarterly dividend of $0.15.

MGIC Investment has raised its dividend by an average of 0.2%per year over the last three years and has raised its dividend every year for the last 6 years. MGIC Investment has a payout ratio of 19.7% meaning its dividend is sufficiently covered by earnings. Analysts expect MGIC Investment to earn $3.27 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 18.3%.

MGIC Investment Trading Down 0.2%

MTG stock opened at $28.99 on Friday. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $29.97. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. The business's 50 day moving average is $26.93 and its 200-day moving average is $26.90. The firm has a market cap of $6.13 billion, a P/E ratio of 9.20, a P/E/G ratio of 2.00 and a beta of 0.67.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, topping the consensus estimate of $0.73 by $0.03. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. During the same quarter last year, the company earned $0.75 EPS. MGIC Investment's revenue was down 3.0% on a year-over-year basis. Equities analysts anticipate that MGIC Investment will post 3.05 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

MTG has been the topic of several recent analyst reports. Royal Bank Of Canada began coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price on the stock. Keefe, Bruyette & Woods lifted their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a report on Friday, April 10th. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research report on Tuesday, July 7th. Finally, Barclays decreased their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, MGIC Investment presently has an average rating of "Hold" and an average target price of $28.25.

MGIC Investment Company Profile

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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