Allstate raises dividend by 8.7% and approves $1.5 billion share repurchase program

From Zacks Investment Research: 2025-02-27 11:48:11

The Allstate Corporation announced an 8.7% increase in its quarterly dividend payout, now at $1 per share. This move reflects confidence in cash flow and prospects, with a yield of 2.12% compared to the industry’s 0.26%. Allstate has raised its dividend five times in the past five years, signaling resilience to market volatility and economic uncertainty. Additionally, the company approved a $1.5 billion share repurchase program. With a focus on core strengths and cost-cutting efforts, Allstate aims to boost underwriting profitability and reinvest in technology and product innovation. Premium growth has been a key driver of success, with steady increases in net premiums earned. The stock is trading below the 50-day moving average, facing headwinds like competition, debt levels, and industry challenges. The company’s Zacks Rank of #3 suggests caution for new investors, awaiting a more favorable entry point.



Read more at Zacks Investment Research: Allstate Sweetens the Deal With a Dividend Hike: Should You Bite? – February 27, 2025