Allstate Corp. (ALL) on Tuesday raised its dividend 5%, joining
other companies looking to return value to shareholders of
late.
The nation's biggest personal-lines insurer has also been buying
back shares, another typical move by companies as corporate cash
piles have grown and the perceived need to hoard capital has
diminished.
Allstate has been stung recently by higher claims costs that
have hurt its operating income. Earlier this month it reported its
fourth-quarter profit fell 43% due to an increase in disaster
claims, primarily from a powerful hailstorm that struck Arizona in
October.
The 1 cent increase in the quarterly payout to 21 cents would
cost the personal-lines insurer an additional $5.4 million a
quarter, based on its average share count last quarter.
Allstate's shares recently traded down 1% at $31.79 as mixed
earnings reports from retailers and escalating tensions in the
Middle East and North Africa weighed on the broader market.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com