Unum Group announces quarterly dividend of $0.42 per share

Published 12/07/2024, 16:12
Unum Group announces quarterly dividend of $0.42 per share

CHATTANOOGA, Tenn. - Unum Group (NYSE:UNM), a global provider of workplace benefits and services, has announced a quarterly dividend of $0.420 per share on its common stock. This dividend is payable on August 16, 2024, to shareholders of record at the close of business on July 26, 2024.

The declaration of this dividend demonstrates the company's commitment to providing value to its stockholders and reflects its financial stability. Unum Group has a long history in the insurance industry, with more than 175 years of service.

It operates under the Unum and Colonial Life brands, offering a range of insurance products including disability, life, accident, critical illness, dental, vision, and stop-loss insurance, as well as leave and absence management support and behavioral health services.

In the previous year, Unum Group reported revenues exceeding $12 billion and paid out approximately $8 billion in benefits. The company, which is part of the Fortune 500 list, has also been acknowledged as one of the World's Most Ethical Companies by Ethisphere®.

This financial move is part of Unum Group's regular practice of providing returns to its investors and maintaining its position in the market. The dividend rate has been consistent with the company's previous quarterly payments, indicating a stable dividend policy.

Investors and market watchers often view dividend announcements as an indicator of a company's confidence in its current financial health and future prospects. Dividends are also a key factor for income-focused investors when evaluating a company's stock for their portfolios.

The information in this article is based on a press release statement from Unum Group.

"In other recent news, Unum Group has reported significant Q1 earnings for 2024, with a notable 13.6% surge in earnings per share and a 6.6% increase in its core operations premium growth. The insurance firm has also unveiled plans to augment shareholder returns by raising its dividend by 15% and doubling its share repurchase program to $500 million per year.

Despite a slight dip in some product lines, Unum Group continues to express confidence in sustaining its leading industry margins and achieving its annual financial targets. In the analyst's corner, Piper Sandler initiated coverage on Unum Group with an Overweight rating and a price target of $57.00, citing the company's robust growth potential and focus on underwriting.

The firm also highlighted Unum Group's successful integration with human resources platforms and the broadening of risk transfers as favorable factors. These recent developments indicate Unum Group's commitment to maintain its industry-leading margins, grow its top line, and build capital flexibility. The company's capital position remains strong, with a projected Risk-Based Capital (RBC) of 415% to 430% and holding company liquidity of over $2 billion anticipated by year-end."

InvestingPro Insights

Unum Group (NYSE:UNM) continues to demonstrate its commitment to shareholders through its latest dividend declaration. With a market capitalization of $9.85 billion and a dividend yield of 2.83%, Unum stands out as a company that balances growth with rewarding its investors. The dividend payout is supported by a solid financial framework, as seen in the company's Price to Earnings (P/E) ratio of 7.68, which suggests that the stock may be undervalued relative to its earnings.

InvestingPro Tips highlight Unum's reliability, with the company having raised its dividend for 15 consecutive years and maintained dividend payments for 38 consecutive years. This consistency is a testament to Unum's stability and prudent financial management. Additionally, with a Price to Book (P/B) ratio of just 0.96 as of the last twelve months ending Q1 2024, the company's stock is trading close to its book value, potentially offering a margin of safety for investors.

For those looking to delve deeper into Unum Group's financial health and future prospects, InvestingPro offers additional insights. There are more InvestingPro Tips available that can provide a comprehensive understanding of the company's performance and outlook. Investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable information that could inform their investment decisions. To explore these tips, visit: https://www.investing.com/pro/UNM.

With Unum's track record of profitability over the last twelve months and analysts predicting the company will remain profitable this year, the dividend appears to be well-supported for the foreseeable future. This, combined with a demonstrated ability to cover short term obligations with liquid assets, provides a reassuring picture for income-focused investors considering Unum Group for their portfolios.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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