insane dividends

[wzebra33]

$1.44 Dividend


On November 1, 2010, Harleysville Group (NASDAQ: HGIC) surprised investors with a $1.44 special dividend, Wunderlich Securities reports. HGIC also reported operating EPS of $0.76 compared to $0.83 a year ago.

“Our estimate was $0.79 and the consensus was $0.78,” Wunderlich Securities writes. “HGIC experienced $3.7 million, or $0.09 per share, in catastrophe losses during 3Q10, which reduced earnings below our expectation.”

Wunderlich Securities said that positive top-line performance and solid book value growth offset the EPS shortfall, adding, “We believe HGIC's ability to successfully manage the company's excess capital and grow the top line profitably supports a premium multiple.”

Wunderlich Securities is raising its price target on HGIC to $40 from $37 to reflect 1.3 times 2011 estimated book value of $31.79.