Arthur J. Gallagher raises dividend to $0.65 per share

ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage and consulting services firm, has increased its quarterly cash dividend. The company’s Board of Directors declared a dividend of sixty-five cents ($0.65) per share on the company’s common stock, marking a five-cent rise from the previous quarter’s dividend. This dividend is slated for payment on March 21, 2025, to stockholders of record as of March 7, 2025.

The firm, which operates in roughly 130 countries, is known for providing insurance brokerage, risk management, and consulting services worldwide. According to InvestingPro, the company has maintained dividend payments for 40 consecutive years and has raised its dividend for 14 straight years, demonstrating a strong commitment to shareholder returns. The company’s robust financial health is reflected in its 15.8% revenue growth over the last twelve months.

Dividends are a portion of a company’s earnings distributed to shareholders and can be a reliable source of income for investors. They also often reflect a company’s confidence in its current financial stability and future prospects. Arthur J. Gallagher & Co.’s decision to raise its dividend could be interpreted as a positive signal to the market about its performance and outlook.

While the announcement of a higher dividend is typically seen as a bullish indicator for a company’s stock, investors should note that InvestingPro analysis indicates the stock is currently trading above its Fair Value, with a P/E ratio of 54.9x. Investors considering AJG can access detailed valuation metrics, growth forecasts, and 10+ additional ProTips through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

The information regarding the dividend increase is based on a press release statement from Arthur J. Gallagher & Co. As with any investment-related news, shareholders and potential investors are advised to conduct their own due diligence when assessing the implications of such announcements on their investment strategies.

In other recent news, Arthur J. Gallagher & Co. has made significant strides in its expansion efforts through various acquisitions, including Wealth Management Partners in Australia and Encore Group in Canada. The company’s growth strategy is further evidenced by its purchase of AssuredPartners, Afina Insurance Advisors Inc., Durham & Bates Agencies, Inc., and M.J. Schuetz Insurance Services Inc. Arthur J. Gallagher also issued $5 billion in senior notes, aimed at supporting its strategic initiatives. The company has reported a 13% increase in revenue across its Brokerage and Risk Management segments.

TD Cowen analyst Andrew Kligerman upgraded Arthur J. Gallagher’s stock to ’Buy’ following the AssuredPartners acquisition, setting a new price target of $377.00. Post-acquisition, BMO Capital revised its future estimates for Arthur J. Gallagher, including a 5% increase for 2025 and an 8% rise for 2026. Keefe, Bruyette & Woods and Truist Securities also revised their price targets for the company.

BMO Capital Markets sustained its Outperform rating and $332.00 price target on Arthur J. Gallagher & Co., suggesting a potential shift in the company’s organic growth pattern for the year, anticipating a softer first half (1H) and a stronger second half (2H). These are the latest developments in Arthur J. Gallagher’s ongoing efforts to strengthen its service offerings and expand its market reach.

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