Intact Financial (TSX: IFC) recently reported its quarterly earnings numbers, with the insurance company closing 2024 with strong results. The company delivered solid earnings growth, supported by strong underwriting performance, rising investment income, and continued expansion in its distribution business. Despite facing significant catastrophe losses during the year, Intact improved its profitability, demonstrating disciplined risk management and pricing strategies. Net operating income per share rose by 23% to $4.93 for the most recent quarter.
The numbers were strong enough for the company to justify a sizeable increase to its dividend. It announced a 10% dividend increase, with investors now receiving a quarterly payment of $1.33 per share moving forward. With the increase, the stock yields 1.8%. Intact has established itself as a solid dividend growth stock and with this latest bump up, it has extended its streak of increases to 20 consecutive years.
Looking ahead, Intact expects continued premium growth across both personal and commercial insurance segments. With a strong balance sheet, disciplined underwriting, and a track record of delivering consistent returns, the company remains well-positioned for steady expansion.
Over the past five years, the stock has risen by more than 90%, and that’s without factoring in all the dividend income investors would have collected over that time frame, showing what a terrific investment it has been over the long haul. It’s also a low-volatility stock as it has a beta value of around 0.60.
For dividend-focused investors and those seeking a reliable financial stock with long-term potential, Intact stands out as an attractive buy-and-hold opportunity.
