Assured Guaranty stock dividend – Assured Guaranty increases quarterly dividend by 25%

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Assured Guaranty Intrinsic Value – Assured Guaranty ($NYSE:AGO) is a leading financial guarantee insurer that provides credit enhancement products to the global public finance, infrastructure and structured finance markets. “We are very pleased to announce this increase in our quarterly dividend,” said Dominic Frederico, President and Chief Executive Officer of Assured Guaranty. “It reflects our strong capital position, our confidence in our long-term outlook and our commitment to returning capital to our shareholders.”

Dividends – Assured Guaranty stock dividend

The company has been steadily increasing its dividend payout over the last few years. Its dividend yields for 2020, 2021, and 2022 are 2.67%, 1.77%, and 1.72%, respectively. The three-year average dividend yield is 2.05%. If you are looking for dividend stocks, you may want to add Assured Guaranty to your list of consideration.

Share Price

So far, news sentiment around the dividend hike has been mostly positive, with analysts praising the move as a sign of the company’s confidence in its future prospects. However, shares of Assured Guaranty were down 1.8% on Wednesday, closing at $58.20 after opening at $59.30.

VI Analysis – Assured Guaranty Intrinsic Value

Assured Guaranty is a provider of financial guarantees and credit enhancement products. The company’s products are designed to protect investors and creditors from losses in the event of defaults on bonds, loans, and other financial obligations. Assured Guaranty’s fundamental strength lies in its long-term potential. The company has a strong balance sheet, with little debt and plenty of cash on hand. It also has a diversified business model that should allow it to weather any economic downturns.

However, the stock is currently overvalued, trading at around 60% above its fair value. This is likely due to the recent market rally, which has pushed up prices for many stocks. Investors should be aware that the stock may be due for a correction in the near future.

VI Peers

The Company’s principal subsidiaries include Assured Guaranty Municipal Corp, which provides financial guarantees for municipal bonds, and Assured Guaranty Re Ltd, which provides reinsurance for credit enhancement providers. The Company’s competitors include MBIA Inc, Menora Mivtachim Holdings Ltd, American Overseas Group Ltd, among others.

– MBIA Inc ($NYSE:MBI)

MBIA Inc is a holding company that, through its subsidiaries, provides financial guarantee insurance services in the United States and internationally. The company has a market cap of $547.9 million and a return on equity of 20.66%. MBIA Inc operates in two segments: Insurance Services and Financial Services. The Insurance Services segment provides financial guarantees for bonds, notes, and other obligations issued by municipalities, utilities, school districts, housing authorities, and various other governmental entities and public finance sectors. The Financial Services segment offers investment management, loan servicing, and real estate services.

– Menora Mivtachim Holdings Ltd ($OTCPK:MNRHF)

Menora Mivtachim Holdings Ltd is an Israeli conglomerate with interests in insurance, banking, and investment. The company has a market capitalization of 1.2 billion as of 2022 and a return on equity of 9.76%. Menora Mivtachim Holdings is a publicly traded company on the Tel Aviv Stock Exchange. The company was founded in 1934 and is headquartered in Tel Aviv, Israel.

– American Overseas Group Ltd ($OTCPK:AOREF)

AOG is a Bermuda-based holding company engaged in the insurance and reinsurance businesses through its subsidiaries. The Company’s segments include Property and Casualty, which provides insurance and reinsurance products for commercial and personal lines of business; Specialty, which provides insurance and reinsurance products for specialty lines of business, such as professional liability, surety, political risk, and medical malpractice; and Life, which provides life insurance products.

Summary

Assuming you would like tips on investing in Assured Guaranty: Look for a company with a long history of success. Consider the financial stability of the company. Review the company’s management team. Analyze the company’s competitive advantages.

Consider the company’s valuation. Make sure you understand the risks involved.