Investors Look for Big Dividend from Progressive
- June 17, 2010
- Dividend Investing, Dividend News, Dividend Stocks
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Investors can now shop for both auto insurance and dividends from Progressive Corp (PGR: 21.44 +0.52%). The auto insurer is on the verge of paying out the largest dividend payout in the company’s history.
The Wall Street Journal today cited Progressive CEO Glenn Renwick speaking at the company’s annual investor day conference.
“If the year continued on the same course and speed as we see ourselves at this point, we would be looking at the largest regular dividend ever paid from Progressive,” Renwick commented Thursday.
Progressive is the nation’s fourth-largest auto insurer, but currently offers dividend investors a rather modest 0.8% yield based on last year’s $.16 per share annual dividend. This year Progressive is likely to announce an annual dividend increase of 60 – 80% depending on how the year ends.
PGR shares climbed 1.2% on the news today and have now gained over 11% in 2010.
Top competitor Allstate (ALL: 30.91 -0.29%) offers investors a higher 2.7% dividend yield, but their stock has underperformed Progressive this year.
