Analysis – Cincinnati Financial Corp. Increases Dividend by 5%

CINF

Cincinnati Financial Corporation announced a regular quarterly dividend of $0.46 per share, a 5 percent increase from the prior rate of $0.44 per share.  The dividend will be paid at the new higher rate on April 15, 2015 to shareholders of record at close of business on March 18, 2015.

Date Quarterly Dividend
3/18/2015 0.46
12/15/2014 0.44
9/15/2014 0.44
6/16/2014 0.44
3/17/2014 0.44
12/16/2013 0.42
9/16/2013 0.42
6/17/2013 0.407
3/18/2013 0.407
12/17/2012 0.407
9/17/2012 0.408
6/18/2012 0.403
3/19/2012 0.403
12/19/2011 0.403
9/19/2011 0.403
6/20/2011 0.4
3/21/2011 0.4
12/20/2010 0.4
9/20/2010 0.4
6/21/2010 0.395
3/22/2010 0.395

Analysis of Valuation of Cincinnati Financial Corp. (Symbol CINF).

Cincinnati Financial is trading above its average price/book value (P/BV) range.  Cincinnati Financial is trading toward the bottom of its average dividend yield range.

Price 2/02/15 % Yield 5 Year Div. Growth Rate BV 2015 P/BV  Ratio 10 yr P/BV  Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
51.44 3.5% 1.5 39.90 1.34 0.53 1.56 5.3% 3.2%

Cincinnati Financial Corp. Dividend Yield Chart (Click to enlarge)

CINF

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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