MGIC Investment Co. (NYSE:MTG) to Issue $0.12 Quarterly Dividend

MGIC Investment Co. (NYSE:MTG) announced a quarterly dividend on Thursday, April 25th, Wall Street Journal reports. Shareholders of record on Thursday, May 9th will be paid a dividend of 0.115 per share by the insurance provider on Tuesday, May 21st. This represents a $0.46 dividend on an annualized basis and a yield of 2.25%. The ex-dividend date is Wednesday, May 8th.

MGIC Investment has increased its dividend by an average of 21.5% annually over the last three years and has raised its dividend every year for the last 3 years. MGIC Investment has a payout ratio of 17.9% meaning its dividend is sufficiently covered by earnings. Analysts expect MGIC Investment to earn $2.53 per share next year, which means the company should continue to be able to cover its $0.46 annual dividend with an expected future payout ratio of 18.2%.

MGIC Investment Stock Performance

MTG opened at $20.48 on Friday. The stock has a market capitalization of $5.52 billion, a price-to-earnings ratio of 8.22, a PEG ratio of 1.68 and a beta of 1.24. MGIC Investment has a fifty-two week low of $13.97 and a fifty-two week high of $22.43. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.98 and a current ratio of 0.98. The company has a fifty day moving average of $20.45 and a 200 day moving average of $19.13.

MGIC Investment (NYSE:MTG) last issued its earnings results on Wednesday, January 31st. The insurance provider reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.10. The firm had revenue of $284.72 million for the quarter, compared to analysts’ expectations of $302.96 million. MGIC Investment had a return on equity of 14.82% and a net margin of 61.72%. As a group, sell-side analysts forecast that MGIC Investment will post 2.43 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on MTG shares. Royal Bank of Canada lifted their target price on MGIC Investment from $18.00 to $21.00 and gave the stock a “sector perform” rating in a report on Friday, February 2nd. Roth Mkm raised their price objective on shares of MGIC Investment from $21.00 to $24.00 and gave the stock a “buy” rating in a research note on Friday, February 2nd. Finally, Keefe, Bruyette & Woods reaffirmed a “market perform” rating and set a $24.00 target price (up previously from $23.50) on shares of MGIC Investment in a research note on Thursday, April 4th. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $21.08.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.