Unum Group (NYSE:UNM) Raises Dividend to $0.51 Per Share

Key Points

• Unum Group raised its quarterly dividend to $0.505 per share from $0.46, a 9.8% increase. The dividend is payable on August 14 to shareholders of record on July 24, and implies an annualized yield of about 2.3%.
• The company has increased its dividend annually for 16 straight years, with a low payout ratio of 18.8% suggesting the dividend remains well covered by earnings. Analysts expect continued coverage next year as well.
• Unum Group recently reported better-than-expected quarterly results, including EPS of $2.14 versus estimates of $2.07 and revenue of $3.36 billion versus expectations of $2.91 billion. Analysts currently rate the stock a Moderate Buy with a consensus price target of $97.36.

Unum Group (NYSE:UNM - Get Free Report) declared a quarterly dividend on Thursday, July 9th. Investors of record on Friday, July 24th will be given a dividend of 0.505 per share by the financial services provider on Friday, August 14th. This represents a c) dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, July 24th. This is a 9.8% increase from Unum Group's previous quarterly dividend of $0.46.

Unum Group has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 16 consecutive years. Unum Group has a dividend payout ratio of 18.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Unum Group to earn $9.65 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 19.1%.

Unum Group Stock Up 0.6%

Shares of NYSE:UNM opened at $88.24 on Friday. The stock has a fifty day simple moving average of $86.27 and a two-hundred day simple moving average of $79.32. The stock has a market capitalization of $14.10 billion, a price-to-earnings ratio of 19.18, a PEG ratio of 0.89 and a beta of 0.25. Unum Group has a 12-month low of $68.28 and a 12-month high of $93.21. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.35.

Unum Group (NYSE:UNM - Get Free Report) last released its earnings results on Tuesday, April 28th. The financial services provider reported $2.14 EPS for the quarter, topping analysts' consensus estimates of $2.07 by $0.07. Unum Group had a return on equity of 12.60% and a net margin of 5.86%.The firm had revenue of $3.36 billion for the quarter, compared to analysts' expectations of $2.91 billion. During the same period in the prior year, the firm posted $2.04 earnings per share. The company's quarterly revenue was up 8.5% on a year-over-year basis. Unum Group has set its FY 2026 guidance at 8.600-8.90 EPS. On average, research analysts anticipate that Unum Group will post 8.76 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts recently issued reports on UNM shares. Truist Financial upped their price target on shares of Unum Group from $88.00 to $96.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Weiss Ratings upgraded shares of Unum Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, May 29th. Evercore reaffirmed an "outperform" rating and issued a $106.00 target price on shares of Unum Group in a report on Tuesday. Wolfe Research dropped their target price on shares of Unum Group from $102.00 to $100.00 and set an "outperform" rating on the stock in a research note on Monday. Finally, Barclays increased their price target on shares of Unum Group from $105.00 to $110.00 and gave the company an "overweight" rating in a report on Monday. Eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Unum Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $97.36.

About Unum Group

Unum Group NYSE: UNM is a leading provider of employee benefits in the United States and selected international markets, specializing in disability, life, accident and critical illness insurance. Through both fully insured and self-funded arrangements, the company offers group coverage designed to protect income and mitigate financial hardship for employees and their families. Its portfolio includes short-term and long-term disability plans, group life and accidental death & dismemberment (AD&D) policies, as well as critical illness and hospital indemnity products.

In addition to its core product lines, Unum Group markets voluntary benefits under its Colonial Life brand, allowing employees to purchase supplemental insurance such as accident, cancer, and dental coverage directly through payroll deductions.

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