This insurance company just walloped earnings estimates, posting 4Q EPS of $2.55, compared to earnings forecasts of $1.32. The shares have a current dividend yield of 4.43%, paid quarterly.
Safety Insurance Group, Inc. (SAFT)
From Forbes Dividend Investor
Boston-based Safety Insurance Group is a property and casualty insurance provider selling through a network of 900 independent agents in Massachusetts, New Hampshire, and Maine.
Private passenger automobile policies account for 55% of premiums while homeowners policies make up 23% of revenue. Safety is the largest commercial automobile carrier, with a 15% share of the Massachusetts market.
The company reports fourth quarter results this Wednesday, February 24. (Nancy’s note: SAFT reported 4Q EPS of $2.55, and full-year EPS of $8.64, handily beating analysts’ estimates). Earnings for all of 2020 are expected to grow 41% to $7.40 per share, giving the stock a trailing 12-month price-earnings ratio of 10.5. That’s 39% below SAFT’s five-year average P/E of 17.2. It also trades at discounts to five-year average multiples of book value, cash flow, and sales.
The yield is a juicy 4%+. Dividends have grown at a 7.8% compound annual rate over the past 10 years, and the ex-dividend date for the next $0.90 per share payout is coming up on March 4. Insiders were big buyers of the stock last fall in the high $60s and low $70s.
John Dobosz, Forbes Dividend Investor, newsletters.forbes.com, 212-367-3388, February 24, 2021