Updating Our High-Growth Payers: Intact Financial

Article Excerpt

INTACT FINANCIAL CORP. $204 is a buy. The company (Toronto symbol IFC; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 175.3 million; Market cap: $35.8 billion; Dividend yield: 2.2%; Dividend Sustainability Rating: Above Average; www.intactfc.com) is Canada’s largest property and casualty insurance provider. Starting with the March 2023 payment, the company raised your quarterly dividend by 10.0%. Investors now receive $1.10 a share instead of $1.00. The new annual rate of $4.40 yields a solid 2.2%. In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in September 2017. Through its businesses, the Minnesota-based insurance holding company provides a range of specialty insurance products. Then, on June 1, 2021, the company—in conjunction with Danish insurer Tryg A/S—completed its $9.3 billion U.S. takeover of U.K.-based RSA Insurance Group plc. Growth by acquisition adds risk. However, Intact has a long track record of successfully integrating its acquisitions. Meantime, in the three months ended December 31, 2022, Intact’s revenue rose 3.9%, to $5.53 billion…