Unum Group announces quarterly dividend of $0.42 per share

CHATTANOOGA, Tenn. - Unum Group (NYSE: NYSE:UNM), an international provider of workplace benefits and services, has declared a quarterly dividend of $0.42 per share on its common stock. This dividend is payable on November 15, 2024, to shareholders of record at the close of business on October 25, 2024.

The announcement made today reflects the company's commitment to delivering value to its shareholders. Unum Group, with a history spanning over 175 years, offers a range of insurance products and services under its Unum and Colonial Life brands, including disability, life, accident, critical illness, dental, vision, and stop-loss insurance. The company also provides leave and absence management support, along with behavioral health services.

In the previous year, Unum Group reported revenues exceeding $12 billion and paid out approximately $8 billion in benefits. The Fortune 500 company has earned recognition as one of the World’s Most Ethical Companies by Ethisphere®, highlighting its commitment to ethical business practices.

This financial move by Unum Group comes as part of its regular practice of paying dividends to its investors and showcases the company's stable financial position and ability to return profits to its shareholders.

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

In other recent news, Unum Group reported record second-quarter earnings of $2.16 per share, a 5.4% increase in core operations premium growth. This solid financial performance has led the company to revise its full-year earnings per share growth forecast from 7-9% to an anticipated 10-15%. This growth has been attributed to strategic initiatives in the group benefits market. Additionally, Unum Group has announced a $1 billion share repurchase authorization, indicating a strong commitment to shareholder returns and prudent capital management.

Piper Sandler has maintained an Overweight rating on Unum Group and raised the company's price target to $66.00, citing the company's strong position to benefit from favorable industry trends. Barclays also initiated coverage on Unum Group with an Overweight rating and a price target set at $73.00, reflecting a positive outlook on the company's future financial performance. Both firms highlighted Unum Group's effective increase in reserves, which provides a solid buffer against potential losses.

These recent developments come as Unum Group continues to differentiate itself within the insurance sector through its robust financial health, strong profitability, and improving cash flow situation. The company's resilience and stability have been further bolstered by improvements in its long-term care block and successful risk management strategies.

InvestingPro Insights

Unum Group's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.73% and has impressively raised its dividend for 15 consecutive years. This consistency in dividend growth, coupled with a 27.27% dividend growth rate over the last twelve months, underscores Unum's commitment to rewarding its shareholders.

The company's financial health appears robust, with a price-to-earnings ratio of 8.91, significantly lower than many in the insurance sector. This suggests that Unum's stock may be undervalued relative to its earnings. Additionally, Unum's revenue growth of 4.62% over the last twelve months indicates steady expansion, supporting its ability to maintain and potentially increase future dividends.

InvestingPro Tips highlight that Unum is trading near its 52-week high and has shown strong returns over the last month, three months, and five years. This positive price momentum, combined with the company's consistent profitability and dividend history, paints a picture of a stable and growing enterprise.

For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Unum Group, providing deeper insights into the company's financial position and market performance.

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