Analysis – The Travelers Companies Inc. Increases Dividend by 11%

TRV2

The Travelers Companies Incorporated announced a regular quarterly dividend of $0.61, an 11 percent increase from the prior rate of $0.55 per share. The dividend will be paid at the new higher rate on June 30, 2015, to shareholders of record at close of business on June 10, 2015. The Travelers Companies Inc. is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
6/10/2015 0.61
3/6/2015 0.55
12/8/2014 0.55
9/8/2014 0.55
6/6/2014 0.55
3/6/2014 0.5
12/6/2013 0.5
9/6/2013 0.5
6/6/2013 0.5
3/6/2013 0.46
12/6/2012 0.46
9/6/2012 0.46
6/6/2012 0.46
3/7/2012 0.41
12/7/2011 0.41
9/7/2011 0.41
6/8/2011 0.41
3/8/2011 0.36
12/8/2010 0.36
9/8/2010 0.36
6/8/2010 0.36
3/8/2010 0.33

Analysis of Valuation of The Travelers Companies Inc. (Symbol TRV).

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

Price 04/22/15 % 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 %
$102.02 2% 5.5% 84.15 1.26 0.63 1.50 3.20% 1.99%
The Travelers Companies Inc. Dividend Yield Chart (Click to enlarge)

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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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