Analysis – AIG Inc. Increases Dividend by 14%

AIG

American International Group, Incorporated announced a regular quarterly dividend of $0.32, a 14 percent increase from the prior rate of $0.28 per share. The dividend will be paid at the new higher rate on March 28, 2016, to shareholders of record at close of business on March 14, 2016.

Date Quarterly Dividend
3/14/2016 0.32
12/3/2015 0.28
9/10/2015 0.28
6/9/2015 0.125
3/10/2015 0.125
12/2/2014 0.125
9/9/2014 0.125
6/6/2014 0.125
3/7/2014 0.125
12/3/2013 0.1
9/10/2013 0.1
1/20/2011 8.7

Analysis of Valuation of AIG Inc. (Symbol AIG).

AIG is trading below its average price/book value (P/BV) range.  AIG is trading at the top of its average historical dividend yield. 

Price 2/5/16 % Yield 5 Year Div. Growth Rate  BV 2016 P/BV Ratio 10 yr P/BV  Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$53 2.42% 35% 88.05 0.67 0.06 3.03 2.42% 0.20%

AIG Inc. Dividend Yield Chart (Click to enlarge) AIG2

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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