Since 2010, Prudential Financial (PRU) has returned approximately $10 billion to shareholders in the form of dividends and buybacks. This is beyond the capital it deployed to support organic growth in mergers and acquisitions.
The company deploys its capital on new initiatives, the expansion of product lines, and technology upgrades to increase its global presence. It also uses cash flows to reward shareholders through dividends and stock repurchases.
The company declared a quarterly dividend of $0.70 per share, a rise of 21% compared to the previous quarter, translating to an annualized dividend yield of 3.9% based on current prices.
The company’s dividend yield has remained at par with other players in the insurance business, which form 20.6% of the iShares MSCI ACWI ETF (ACWI). The distributions formed 1.8% of the company’s total market capitalization of $31 billion.
Prudential Financial increased its share repurchase authorization by 50% to $1.5 billion in 2016, reflecting the company’s increased confidence in its current valuation as well as its long-term prospects.
In 4Q15, the company repurchased ~3.1 million shares for $250 million at an average price of $80.8 per share. The repurchases were made under the authorization of $1 billion that was announced by the board on June 9, 2015.
Since the commencement of share repurchases in July 2011, Prudential has made a total repurchase of 65 million of its common stock, forming 14% of total outstanding shares. The repurchases were made at a cost of $4.4 billion at an average price of $67.7 per share.
Other insurers are also returning capital to shareholders by repurchasing their shares. For example, Chubb (CB) repurchased $350 million in shares, ACE (ACE) repurchased $430 million in shares, and Allstate (ALL) made a share repurchase of ~$250 million.
With the recent rally in crude oil prices, Newfield Exploration (NFX) stock has been on an uptrend. On March 1, 2016, it crossed its 50-day moving average for the first time in 2016.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.