Old Republic International: A Top Pick for Conservative Dividend Portfolios

Old Republic International Corporation offers a 3.37% dividend yield and has consistently increased its dividend for 44 years, making it a top choice for conservative dividend portfolios. The company's strong fundamentals, attractive valuation, and positive analyst sentiment support its investment potential.

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Aqsa Younas Rana
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Old Republic International: A Top Pick for Conservative Dividend Portfolios

Old Republic International: A Top Pick for Conservative Dividend Portfolios

Old Republic International Corporation (ORI), a Chicago-based insurance underwriting and related services company operating primarily in the United States and Canada, has emerged as a top choice for investors seeking to build a conservative dividend portfolio. Founded in 1923, Old Republic International boasts a strong track record of delivering meaningful dividends and sustainable growth.

Currently, Old Republic International pays a dividend yield of 3.37%, which is higher than the bottom 25% of all dividend-paying stocks. Impressively, the company has been consistently increasing its dividend for 44 years, demonstrating its commitment to rewarding shareholders. With a dividend payout ratio of 41.25%, Old Republic International maintains a healthy and sustainable level below 75%. Looking ahead, based on earnings estimates, the dividend payout ratio is expected to be 37.19% next year, indicating the company's ability to sustain or even increase its dividend.

Why this matters: This article highlights the importance of investing in high-quality dividend stocks for retirees, providing a stable source of income in their golden years. The selection of these top dividend stocks can have a significant impact on the financial security and well-being of retirees, making it a crucial consideration for investors.

Earnings for Old Republic International are expected to grow by 4.40% in the coming year, from $2.73 to $2.85 per share. The company's P/E ratio stands at 12.22, making it less expensive than the market average P/E ratio of about 12.43 and significantly lower than the Finance sector average P/E ratio of approximately 36.42. This attractive valuation, coupled with the company's strong fundamentals, positions Old Republic International as a compelling investment opportunity.

Institutional investors hold 70.92% of Old Republic International's stock, signaling strong market trust in the company. In the past three months, insiders have demonstrated their confidence by buying 67.03% more of their company's stock than they have sold. A total of $236,235,000 in company stock was purchased, while $141,432,000 was sold.

Wall Street equities research analysts have given Old Republic International a consensus rating of "Buy," with an average rating score of 3.00 based on 2 buy ratings and no hold or sell ratings. The company's stock price is expected to reach $34.00 in the next year, suggesting a possible upside of 8.2% from the current price.

Old Republic International saw an increase in short interest in April, with a short interest ratio of 2.3 days. The company is scheduled to release its next quarterly earnings announcement on Thursday, July 25th, 2024.

With its strong management team, solid fundamentals, and investment-grade rating, Old Republic International stands out as one of the top 5 high-quality dividend stocks for retirees looking to build a conservative dividend portfolio. The company's consistent dividend growth, attractive valuation, and positive analyst sentiment make it a compelling choice for income-seeking investors.

Key Takeaways

  • Old Republic International (ORI) offers a 3.37% dividend yield and 44 years of consistent dividend growth.
  • The company's dividend payout ratio is 41.25%, expected to decrease to 37.19% next year.
  • Earnings are expected to grow 4.40% in the coming year, with a P/E ratio of 12.22.
  • Institutional investors hold 70.92% of ORI's stock, and insiders have bought 67.03% more stock than sold.
  • Analysts give ORI a "Buy" rating, with a target price of $34.00, suggesting an 8.2% upside.