Horace Mann (HMN) to Share More Profit, Ups Dividend by 3%

Horace Mann Educators Corporation's
HMN board of
directors approved a 3.1% hike in its quarterly

dividend. This insurer will now pay 34 cents per share, up from
the earlier payout of 33 cents. Shareholders of record as of Mar
16, will receive the new dividend on Mar 29.

This increased dividend translates to an annualized payout of
$1.36 per share. Based on the stock's Mar 4, closing price of
$35.60, the new dividend will yield nearly 3.8%, better than the

industry's average of 2.5%. With 40.8 million shares
outstanding at 2023-end, the company will have to dish out $13.5
million quarterly to pay the dividend.

The recent approval marks the 16th straight yearly hike,
reflecting operational excellence and commitment to return value to
its shareholders. Its dividend witnessed a 15-year CAGR of about
10%. The company's strategic focus on designing products to
capitalize on the potential opportunity in the K-12 educator
market, annuity reinsurance agreement, strategic diversification,
profitable in-force block, high quality and well-diversified
investment portfolio, and cost-saving initiatives are likely to
help increase dividends.

HMN targets a 50% dividend payout ratio. In fact, this
currently Zacks Rank #1 (Strong Buy) insurer targets to double its
earnings per share (EPS) to a range of $3.00-$3.30 in 2024, banking
on these positives.

Apart from dividend hikes, the multiline financial services
company focused on America's educators also engages in share
buybacks. It bought back shares worth $6.5 million in 2023 with
$34.9 million remaining under authorization as of Dec 31, 2023.

A solid financial foundation and operational performance will
help generate capital, thereby aiding Horace Mann to engage in
shareholder-friendly moves as well as invest in business growth at
returns that meet or exceed its return on equity targets. The
insurer estimates generating excess capital of $50 million
annually. Horace Mann estimates generating double-digit core ROE by
2025 as core EPS approaches $4.

Shares of Horace Mann have gained 8.9% year to date
outperforming the industry's increase of 2.5%. Transformational
actions, profitability initiatives and niche market focus should
help shares trend higher.

Image
Source: Zacks Investment Research

Recently,
Chubb Limited's
CB board of
directors proposed a 5.8% hike in its dividend at the company's
annual general meeting. If approved, the insurer will now pay an
annual
dividend
of $3.64 or 91 cents per share quarterly. The latest hike would
mark the 31st straight year of dividend increase.

Chubb has maintained a strong balance sheet and financial
flexibility, including consistent cash flow generation, for many
years now. The insurer's cash flow has been increasing over the
years. This has paved the way for prudent capital deployment
measures.

Other Stocks to Consider

Some other top-ranked stocks from the same space are
Axis Capital Holdings
AXS and
The Progressive Corporation
PGR, each
sporting a Zacks Rank of 1. You can see


the complete list of today's Zacks #1 Rank stocks here
.

Axis Capital delivered a trailing four-quarter average
earnings surprise of 102.57%. The stock has gained 9.6% year to
date. The Zacks Consensus Estimate for AXS' 2024 and 2025 earnings
indicates an increase of 3.1% and 10.1%, respectively.

Progressive delivered an earnings surprise in two of the last
four quarters while missing the estimates on the other two
occasions. The stock has gained 19.3% year to date. The Zacks
Consensus Estimate for PGR's 2024 and 2025 earnings indicates an
increase of 49.4% and 14.8%, respectively.

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Chubb Limited (CB): Free Stock Analysis Report

Axis Capital Holdings Limited (AXS): Free Stock Analysis Report

The Progressive Corporation (PGR): Free Stock Analysis Report

Horace Mann Educators Corporation (HMN): Free Stock Analysis
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