Allstate Rewards Shareholders with 4.9% Dividend Hike

Insurance company The Allstate Corporation (NYSE: ALL) recently announced a quarterly dividend of $0.85 per share, a 4.9% increase from the previous dividend of $0.81.

The dividend will be paid on April 1, 2022, to shareholders of record as of February 28, 2022.

Following the news, shares of the company rose 2.7% on Friday. However, the stock pared its gains marginally to close at $125.80 in the extended trading session.

The company’s annual dividend of $3.4 per share now reflects a dividend yield of 2.7% based on Friday’s closing price.

Notably, the company has been raising its dividend consistently over the past ten years, making it an attractive choice for investors.

Management Commentary

The CFO of Allstate, Mario Rizzo, said, “Allstate continues to provide excellent cash returns to shareholders while simultaneously advancing our strategic priorities for the business. A higher dividend and the continued execution of the $5 billion share repurchase program previously authorized by our board demonstrate Allstate’s ongoing commitment to return capital to shareholders. Over the past five years, Allstate has returned more than $13.7 billion to shareholders.”

Analyst Ratings

Recently, Wells Fargo analyst Elyse Greenspan reiterated a Sell rating on the stock with a price target of $105, which implies downside potential of 16.6% from current levels.

Consensus among analysts is a Hold based on 4 Buys, 5 Holds and 2 Sells. The average Allstate stock prediction of $131.30 implies upside potential of 4.3% from current levels. Shares have gained 19.5% over the past year.

News Sentiment

News Sentiment for ALL is Neutral based on 9 articles over the past seven days. 50% of the articles have Bullish sentiment, compared to a sector average of 64%.

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