What Happened to QBE Insurance Group Ltd’s Share Price?
Shares in international insurance underwriter QBE Insurance Group Ltd [ASX:QBE] soared by nearly 5% on Thursday, racing ahead of a bullish Australian stock market. QBE shares have enjoyed a cracking start to the year, bringing investors a 26.5% return since the end of January.
Why Did This Happen to QBE Shares?
At Thursday’s annual general meeting, QBE flagged higher dividends in 2015. The chaiman’s comments suggested that the firm could boost its 50% dividend payout ratio.
Fatter dividends have come into view as QBE has dialled up its profit targets. The insurer is pointing to a significant boost in after tax profit in 2015.
Although QBE expects its gross written premium, or revenue, to remain flat in 2015 as a casualty of the strong US dollar, yield-seeking investors have cheered the prospect of a dividend hike. That’s what gave QBE’s stock price a boost on Thursday.
What Now for QBE?
QBE has come through a tough time. It looks well-placed to continue rewarding shareholders for the faith they placed in the firm through a challenging 2014. With its stock price still quite depressed from previous years, QBE shares could now come onto more and more value investors’ radars.
It’s a great feeling watching a stock you hold power through an uptrend, like the one QBE has tracked since Janaury. We aim to bring risk-tolerant investors even greater joy through our small-cap stock investment advisory service. Go here to find out more.
Cheers, Tim Dohrmann
Small-Cap Analyst, Australian Small-Cap Investigator