Donegal Group Inc. Declares Quarterly Dividend of $0.14 (DGICA)

Donegal Group Inc. (NASDAQ:DGICA) announced a quarterly dividend on Friday, October 19th, Wall Street Journal reports. Investors of record on Thursday, November 1st will be given a dividend of 0.1425 per share by the insurance provider on Thursday, November 15th. This represents a $0.57 annualized dividend and a yield of 4.15%. The ex-dividend date of this dividend is Wednesday, October 31st.

Donegal Group has raised its dividend by an average of 12.6% per year over the last three years and has raised its dividend every year for the last 2 years. Donegal Group has a dividend payout ratio of -380.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Donegal Group to earn $1.05 per share next year, which means the company should continue to be able to cover its $0.57 annual dividend with an expected future payout ratio of 54.3%.

NASDAQ:DGICA opened at $13.74 on Friday. Donegal Group has a 52-week low of $13.27 and a 52-week high of $18.25. The company has a current ratio of 0.43, a quick ratio of 0.43 and a debt-to-equity ratio of 0.15.

Donegal Group (NASDAQ:DGICA) last posted its quarterly earnings data on Monday, July 30th. The insurance provider reported ($0.02) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.11) by $0.09. The company had revenue of $194.27 million during the quarter, compared to analyst estimates of $195.50 million. Donegal Group had a negative return on equity of 2.36% and a negative net margin of 1.92%. On average, equities research analysts forecast that Donegal Group will post -0.15 EPS for the current fiscal year.

In other Donegal Group news, Director Patricia A. Gilmartin sold 8,229 shares of the firm’s stock in a transaction dated Monday, August 27th. The stock was sold at an average price of $14.65, for a total transaction of $120,554.85. Following the sale, the director now owns 500 shares in the company, valued at $7,325. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 13.13% of the company’s stock.

Several research firms recently issued reports on DGICA. BidaskClub raised Donegal Group from a “sell” rating to a “hold” rating in a research note on Wednesday, July 11th. Boenning Scattergood reissued a “hold” rating on shares of Donegal Group in a research note on Tuesday, July 31st. Finally, Zacks Investment Research raised Donegal Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 18th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. Donegal Group presently has an average rating of “Hold” and an average target price of $19.00.

About Donegal Group

Donegal Group Inc, an insurance holding company, provides property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC.

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Dividend History for Donegal Group (NASDAQ:DGICA)

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