MILWAUKEE - MGIC Investment Corporation (NYSE: NYSE:MTG) has announced an increase in its quarterly cash dividend to $0.13 per share, marking a 13% rise from the previous dividend of $0.115 per share. Shareholders on record as of August 8, 2024, will be eligible for the dividend, which is scheduled for payment on August 22, 2024.
The company, a leading provider of private mortgage insurance, supports lenders across the United States in making homeownership more accessible by offering insurance for low-down-payment mortgages. This financial tool is pivotal in enabling families to purchase homes sooner than they might otherwise be able to.
MGIC Investment Corporation regularly updates investors and the public with significant information through its corporate website. To stay informed, stakeholders can sign up for email alerts and RSS feeds to receive notifications about new postings, which may include corrections to previous disclosures.
The decision to increase the dividend reflects the company's financial health and its commitment to delivering value to its shareholders. Dividends are a way for companies to distribute a portion of their earnings back to shareholders, and an increase in the dividend amount is often seen as a positive signal about a company's future earnings prospects.
This news is based on a press release statement from MGIC Investment Corporation.
In other recent news, MGIC Investment Corporation reported strong Q1 2024 results, revealing a net income of $174 million and an annualized return on equity of 13.7%. Despite the housing market's challenges, the company saw a $9 billion increase in new insurance written and repurchased $93 million of its common stock, further announcing a substantial $750 million share repurchase program.
The company's capital position remains robust, with $6 billion on the balance sheet and a reinsurance program that significantly reduces required assets.
These developments come amid a mortgage origination market constrained by lower volumes and limited housing supply. Still, MGIC remains optimistic about the mortgage insurance market's prospects, citing sustained demand from younger generations. The company's financial strength and credit ratings have been upgraded by S&P and Moody's (NYSE:MCO), indicating a favorable future outlook.
The company also anticipates an increase in new delinquency notices, despite a 6% decrease in overall delinquency inventory. Operating expenses for the quarter were reported at $61 million, with full-year expenses projected to be between $215 million and $225 million. These are the recent developments for MGIC, providing investors with a detailed view of the company's performance and strategies.
InvestingPro Insights
MGIC Investment Corporation's recent announcement of a dividend increase is a testament to its solid financial position and commitment to shareholder returns. The company's proactive share buyback strategy, as indicated by InvestingPro Tips, showcases management's confidence in the company's value. Moreover, MGIC's consistent dividend growth, now for the fifth consecutive year, aligns with the positive outlook reflected in the upward earnings revisions by analysts for the upcoming period.
InvestingPro Data further highlights the company's robust financial metrics. With a market capitalization of $6.52 billion and a Price/Earnings (P/E) ratio of 9.2, which adjusts to 8.87 for the last twelve months as of Q1 2024, MTG presents itself as a potentially attractive investment. Additionally, the company's strong gross profit margin of 85.45% over the same period underpins its efficiency in generating earnings relative to its revenue.
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