MGIC Investment Corporation (NYSE:MTG) Announces Dividend Increase – $0.17 Per Share

MGIC Investment Corporation (NYSE:MTG) declared a quarterly dividend on Thursday, July 23rd. Shareholders of record on Wednesday, August 5th will be paid a dividend of 0.17 per share by the insurance provider on Thursday, August 20th. This represents a c) annualized dividend and a yield of 2.3%. The ex-dividend date 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 payment by an average of 0.2%per year over the last three years and has increased its dividend annually for the last 6 consecutive years. MGIC Investment has a dividend payout ratio of 19.7% indicating that 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 Stock Down 0.2%

NYSE MTG opened at $28.99 on Friday. The business has a fifty day moving average price of $26.93 and a two-hundred day moving average price of $26.90. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. MGIC Investment has a fifty-two week low of $24.69 and a fifty-two week high of $29.97. The stock has a market capitalization of $6.13 billion, a PE ratio of 9.20, a PEG ratio of 2.00 and a beta of 0.67.

MGIC Investment (NYSE:MTG) last issued its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, beating 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 company had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. During the same quarter last year, the company posted $0.75 EPS. The company’s revenue for the quarter was down 3.0% compared to the same quarter last year. Equities analysts expect that MGIC Investment will post 3.05 earnings per share for the current fiscal year.

MGIC Investment declared that its board has initiated a share 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 reacquire up to 12.4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is 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.