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Brown & Brown announces 15% dividend increase

Published 23/10/2024, 22:10
BRO
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DAYTONA BEACH, Fla. - Brown & Brown, Inc. (NYSE: BRO), an insurance brokerage firm, has declared a 15% increase in its regular quarterly cash dividend, marking the company's 31st consecutive annual dividend rise. Shareholders of record as of November 6, 2024, will receive a dividend of $0.15 per share, payable on November 13, 2024.

This increase from the previous dividend of $0.13 per share reflects the company's consistent performance and commitment to providing shareholder value. Brown & Brown has been a fixture in the insurance industry since 1939, offering risk management solutions to both individuals and businesses.

With a workforce of over 16,000 employees and more than 500 locations worldwide, Brown & Brown stands as a significant player in the insurance brokerage sector. The firm emphasizes its dedication to innovative strategies that safeguard customer interests.

The announcement of the dividend hike is a noteworthy event for investors, as it continues a long-standing tradition of annual dividend increases by the firm. It also serves as an indicator of Brown & Brown's financial health and its ability to generate consistent returns for its shareholders.

This financial decision aligns with the company’s history of maintaining a steady dividend policy. The information regarding the dividend is based on a press release statement from Brown & Brown, Inc.

In other recent news, Brown & Brown has seen a series of noteworthy developments. Truist Securities raised the price target for Brown & Brown to $116, maintaining a Buy rating. This adjustment reflects an anticipation of positive future performance despite a less favorable operating environment in the recent quarter.

The insurance brokerage firm reported a 12.5% increase in second-quarter revenue, reaching nearly $1.2 billion, and a 17.7% rise in adjusted earnings per share to $0.93. Contributing to this growth were ten strategic acquisitions, which added approximately $13 million in annual revenues.

Brown & Brown also expanded its leadership team with the appointments of Mike Neal and Mark Abate and the addition of industry veteran Stephen P. Hearn to its board of directors. The firm acquired the assets of The Canopy Group, a move that strengthens its presence in the personal and small business insurance sectors.

Analyst firms Barclays (LON:BARC) and RBC Capital Markets provided their insights on Brown & Brown's performance. Barclays initiated coverage of the company with an Equalweight rating, indicating a balanced outlook, while RBC Capital Markets maintained an Outperform rating, raising its stock target in recognition of Brown & Brown's robust second quarter performance. These recent developments reflect Brown & Brown's strategic expansion and strong performance in the insurance brokerage industry.

InvestingPro Insights

Brown & Brown's recent 15% dividend increase aligns perfectly with its impressive track record of dividend growth. According to InvestingPro data, the company has raised its dividend for 31 consecutive years, demonstrating a strong commitment to shareholder returns. This consistency is further underscored by the fact that Brown & Brown has maintained dividend payments for 39 consecutive years.

The company's financial health appears robust, with a market capitalization of $30.21 billion and a revenue of $4.45 billion over the last twelve months as of Q2 2024. Brown & Brown has shown solid growth, with revenue increasing by 12.21% during this period. This growth trajectory supports the company's ability to continue its dividend increases.

InvestingPro Tips highlight that Brown & Brown is trading near its 52-week high, with a significant price uptick of 27.52% over the last six months. This performance indicates strong investor confidence in the company's prospects. Additionally, the company's profitability is emphasized by another InvestingPro Tip, which notes that analysts predict the company will be profitable this year.

For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips that could provide valuable context for Brown & Brown's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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