American International Group, Inc. (NYSE:AIG) Announces Dividend Increase – $0.40 Per Share

American International Group, Inc. (NYSE:AIG) declared a quarterly dividend on Wednesday, May 1st, Zacks reports. Shareholders of record on Friday, June 14th will be given a dividend of 0.40 per share by the insurance provider on Friday, June 28th. This represents a $1.60 dividend on an annualized basis and a yield of 2.04%. The ex-dividend date is Friday, June 14th. This is a boost from American International Group’s previous quarterly dividend of $0.36.

American International Group has increased its dividend payment by an average of 3.0% per year over the last three years and has raised its dividend annually for the last 1 consecutive years.

American International Group Trading Up 0.5 %

NYSE:AIG traded up $0.38 during mid-day trading on Friday, hitting $78.48. 6,295,587 shares of the stock traded hands, compared to its average volume of 4,001,248. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.44. American International Group has a 52 week low of $48.95 and a 52 week high of $79.70. The stock has a market capitalization of $53.44 billion, a price-to-earnings ratio of 11.71, a PEG ratio of 1.09 and a beta of 1.02. The firm’s 50 day moving average is $75.24 and its two-hundred day moving average is $69.36.

American International Group (NYSE:AIG) last issued its quarterly earnings results on Thursday, May 2nd. The insurance provider reported $1.77 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.11. The firm had revenue of $12.58 billion for the quarter, compared to the consensus estimate of $12.04 billion. American International Group had a return on equity of 10.68% and a net margin of 9.98%. During the same period in the prior year, the business posted $1.63 earnings per share. On average, equities research analysts predict that American International Group will post 6.95 earnings per share for the current year.

Insider Transactions at American International Group

In related news, Director John C. Inglis acquired 659 shares of American International Group stock in a transaction that occurred on Thursday, March 14th. The shares were purchased at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the transaction, the director now owns 659 shares in the company, valued at approximately $49,682.01. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CEO Peter Zaffino sold 333,000 shares of the stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $75.87, for a total transaction of $25,264,710.00. Following the transaction, the chief executive officer now owns 505,420 shares of the company’s stock, valued at approximately $38,346,215.40. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director John C. Inglis purchased 659 shares of the business’s stock in a transaction on Thursday, March 14th. The shares were acquired at an average price of $75.39 per share, for a total transaction of $49,682.01. Following the completion of the purchase, the director now directly owns 659 shares of the company’s stock, valued at $49,682.01. The disclosure for this purchase can be found here. Corporate insiders own 0.61% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have commented on AIG. Keefe, Bruyette & Woods raised their target price on shares of American International Group from $82.00 to $86.00 and gave the company an “outperform” rating in a research report on Wednesday, April 10th. Piper Sandler raised their price target on shares of American International Group from $87.00 to $89.00 and gave the company an “overweight” rating in a report on Friday, April 19th. Bank of America lowered shares of American International Group from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $75.00 to $77.00 in a report on Tuesday, February 20th. UBS Group boosted their target price on American International Group from $83.00 to $84.00 and gave the stock a “buy” rating in a research note on Thursday, February 22nd. Finally, Wells Fargo & Company upped their price objective on shares of American International Group from $74.00 to $80.00 and gave the company an “equal weight” rating in a report on Thursday, April 11th. Eight research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $80.44.

American International Group declared that its board has initiated a share repurchase program on Wednesday, May 1st that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 19.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its shares are undervalued.

About American International Group

American International Group, Inc offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; and professional liability insurance.