American International Group, Inc. (NYSE:AIG) Announces Quarterly Dividend of $0.40

American International Group, Inc. (NYSE:AIG) announced a quarterly dividend on Wednesday, July 31st, Zacks reports. Shareholders of record on Monday, September 16th will be given a dividend of 0.40 per share by the insurance provider on Monday, September 30th. This represents a $1.60 annualized dividend and a yield of 2.21%. The ex-dividend date is Monday, September 16th.

American International Group has raised its dividend payment by an average of 3.0% annually over the last three years. American International Group has a payout ratio of 21.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect American International Group to earn $7.37 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 21.7%.

American International Group Stock Performance

NYSE AIG traded down $2.49 during midday trading on Friday, hitting $72.42. The company had a trading volume of 2,221,482 shares, compared to its average volume of 4,192,035. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.05. The stock has a market cap of $48.06 billion, a price-to-earnings ratio of 10.97, a P/E/G ratio of 2.62 and a beta of 1.07. The firm has a fifty day simple moving average of $76.06 and a two-hundred day simple moving average of $74.70. American International Group has a fifty-two week low of $57.02 and a fifty-two week high of $80.83.

American International Group (NYSE:AIG) last released its quarterly earnings data on Wednesday, July 31st. The insurance provider reported $1.16 EPS for the quarter, missing analysts’ consensus estimates of $1.30 by ($0.14). The business had revenue of $1.00 million for the quarter, compared to the consensus estimate of $11.64 billion. American International Group had a positive return on equity of 9.37% and a negative net margin of 1.54%. American International Group’s revenue was up .0% on a year-over-year basis. During the same period in the previous year, the business posted $1.75 earnings per share. Equities analysts forecast that American International Group will post 6.4 earnings per share for the current fiscal year.

American International Group declared that its board has approved a share repurchase program on Wednesday, May 1st that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the insurance provider to repurchase up to 19.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Insider Transactions at American International Group

In other news, major shareholder International Group American sold 1,932,609 shares of American International Group stock in a transaction that occurred on Tuesday, July 2nd. The shares were sold at an average price of $29.20, for a total transaction of $56,432,182.80. Following the completion of the sale, the insider now owns 292,271,027 shares in the company, valued at approximately $8,534,313,988.40. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In other news, Director W Don Cornwell 1,000 shares of the company’s stock in a transaction on Tuesday, July 30th. The was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder International Group American sold 1,932,609 shares of the business’s stock in a transaction that occurred on Tuesday, July 2nd. The shares were sold at an average price of $29.20, for a total transaction of $56,432,182.80. Following the transaction, the insider now owns 292,271,027 shares of the company’s stock, valued at approximately $8,534,313,988.40. The disclosure for this sale can be found here. 0.61% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of equities analysts have recently commented on AIG shares. Wells Fargo & Company raised their price objective on shares of American International Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a report on Friday, May 10th. HSBC downgraded shares of American International Group from a “buy” rating to a “hold” rating and set a $86.00 price objective for the company. in a report on Wednesday, May 15th. Citigroup cut their price target on shares of American International Group from $89.00 to $87.00 and set a “buy” rating for the company in a report on Tuesday, July 23rd. JPMorgan Chase & Co. lifted their price target on shares of American International Group from $80.00 to $93.00 and gave the company a “neutral” rating in a report on Thursday, July 11th. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $87.00 price target on shares of American International Group in a report on Tuesday, July 9th. Nine research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, American International Group has an average rating of “Hold” and a consensus price target of $82.38.

American International Group Company Profile

American International Group, Inc offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; and professional liability insurance.