MILWAUKEE - MGIC Investment Corporation (NYSE: NYSE:MTG) has announced a quarterly cash dividend of $0.13 per share. This dividend is slated for payment on November 21, 2024, to shareholders who are on record as of November 7, 2024.
MGIC, the primary subsidiary of MGIC Investment Corporation, provides private mortgage insurance across the United States. This service aids lenders in offering low-down-payment mortgages, thus facilitating homeownership for families.
The company regularly communicates significant updates through its corporate and subsidiary websites. These updates may include corrections to previous disclosures and can occur without further press releases. MGIC encourages stakeholders to sign up for email alerts and RSS feeds to stay informed about new postings, with enrollment available on their website.
This latest financial announcement is based on a press release statement from MGIC Investment Corporation.
In other recent news, MGIC Investment Corporation reported a strong financial performance for the second quarter of 2024, recording a net income of $204 million and a 16% annualized return on equity. The insurance firm ended the quarter with $292 billion in insurance in force and wrote $13.5 billion in new insurance, demonstrating a period of robust credit quality and risk management. Despite industry challenges such as higher interest rates and a limited housing supply, MGIC remains confident in its market position and business strategy. The company's capital management strategy, which included a share repurchase of 7.6 million shares for $157 million and a 13% dividend increase to $0.13 per share, affirms its commitment to financial strength and flexibility. These are recent developments that illustrate the company's resilience amidst industry headwinds. The firm anticipates cure activity to soften but expects overall favorable credit performance. Furthermore, MGIC doesn't target a specific payout ratio; instead, it focuses on capital sufficiency to support risk and new business.
InvestingPro Insights
MGIC Investment Corporation's recent dividend announcement aligns with its strong financial performance and shareholder-friendly policies. According to InvestingPro data, the company's dividend yield stands at 2.05%, with a remarkable dividend growth of 30% over the last twelve months. This growth is particularly noteworthy as an InvestingPro Tip reveals that MGIC has raised its dividend for 5 consecutive years, demonstrating a consistent commitment to returning value to shareholders.
The company's financial health appears robust, with a price-to-earnings ratio of 8.82 for the last twelve months as of Q2 2024, indicating that the stock may be undervalued relative to its earnings. This is further supported by MGIC's strong profitability, as evidenced by its impressive gross profit margin of 85.78% for the same period.
Another InvestingPro Tip highlights that MGIC's management has been aggressively buying back shares, which, coupled with the dividend increases, suggests a strong focus on enhancing shareholder value. This strategy appears to be paying off, as the stock has shown a significant price uptick of 26.2% over the last six months.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and analysis, with 10 more tips available for MGIC Investment Corporation. These additional insights could provide valuable context for understanding the company's financial position and future prospects in the mortgage insurance industry.
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