Reinsurance Group of America, Incorporated (NYSE:RGA) Declares Dividend Increase - $0.98 Per Share

Key Points

• Reinsurance Group of America raised its quarterly dividend 5.4% to $0.98 per share from $0.93, payable September 1 to shareholders of record on August 18. The annualized dividend yield is approximately 1.6%, and the company has increased its dividend for 16 consecutive years.
• RGA reported quarterly earnings of $8.89 per share, well above the $6.50 analyst consensus, while revenue reached $6.64 billion and rose 18.5% year over year.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $257.11. Shares opened at $249.19, near their 52-week high of $251.00.

Reinsurance Group of America, Incorporated (NYSE:RGA - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Investors of record on Tuesday, August 18th will be paid a dividend of 0.98 per share by the insurance provider on Tuesday, September 1st. This represents a c) dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Tuesday, August 18th. This is a 5.4% increase from Reinsurance Group of America's previous quarterly dividend of $0.93.

Reinsurance Group of America has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 16 consecutive years. Reinsurance Group of America has a payout ratio of 15.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Reinsurance Group of America to earn $29.06 per share next year, which means the company should continue to be able to cover its $3.92 annual dividend with an expected future payout ratio of 13.5%.

Reinsurance Group of America Price Performance

Reinsurance Group of America stock opened at $249.19 on Friday. The firm has a market cap of $16.27 billion, a PE ratio of 10.94 and a beta of 0.47. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.14 and a quick ratio of 0.14. The stock's fifty day moving average price is $227.11 and its two-hundred day moving average price is $215.33. Reinsurance Group of America has a one year low of $178.21 and a one year high of $251.00.

Reinsurance Group of America (NYSE:RGA - Get Free Report) last released its earnings results on Thursday, August 6th. The insurance provider reported $8.89 earnings per share for the quarter, beating analysts' consensus estimates of $6.50 by $2.39. The firm had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.67 billion. Reinsurance Group of America had a return on equity of 14.78% and a net margin of 5.81%.The company's revenue was up 18.5% compared to the same quarter last year. During the same period in the prior year, the company posted $4.72 EPS. As a group, research analysts expect that Reinsurance Group of America will post 28.26 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently commented on RGA shares. Piper Sandler dropped their price target on Reinsurance Group of America from $263.00 to $261.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Barclays raised their target price on shares of Reinsurance Group of America from $278.00 to $290.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Wall Street Zen upgraded shares of Reinsurance Group of America from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Evercore reaffirmed an "outperform" rating and set a $267.00 price target on shares of Reinsurance Group of America in a report on Monday, May 18th. Finally, TD Cowen upped their price objective on Reinsurance Group of America from $212.00 to $235.00 and gave the stock a "hold" rating in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $257.11.

Reinsurance Group of America Company Profile

Reinsurance Group of America, Incorporated NYSE: RGA is a leading global provider of life and health reinsurance solutions. Headquartered in St. Louis, Missouri, RGA partners with primary insurance companies to help them manage risk, improve capital efficiency and develop innovative products. The company's offerings span traditional risk transfer, financial solutions and facultative underwriting services, enabling clients to address a wide range of mortality, longevity, morbidity and critical-illness exposures.

RGA's product suite includes life reinsurance, living benefits reinsurance, structured reinsurance and financial solutions that support product innovation and capital management.

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