MetLife Spikes on First Dividend Hike in Six years

Michael Teague |

MetLife HQShares for the United States’ biggest life insurance provider MetLife (MET) were up over 6 percent to as high as $38.35 on Tuesday, as the company announced that it would be increasing its dividend payout for the first time since 2007.



Last year, MetLife’s $2 billion share buyback and dividend $1.10 per share dividend increase plans were nixed by the Federal Reserve, whose stress tests found that the company would fall short of the capital requirements deemed necessary for financial institutions to survive severe and unexpected disruptions to the economy.

In 2011, the company announced its intent to end its bank holding operations that alone were keeping it under the careful scrutiny of Federal Reserve regulators. In February, MetLife officially ended its status as a bank with approval from the Federal Deposit Insurance Corporation and the Federal Reserve when it finalized deals to sell off certain bank deposits, as well as its mortgage-servicing and home-loan units, freeing it from the most stringent aspects of regulatory oversight.

The dividend payout, previously $0.185 per share, was increased to $0.275 per share (representing a 2.86 percent annual yield) and will be payable to shareholders on June 13, 2013.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MET MetLife Inc. 53.68 0.33 0.62 3,130,437
AHPI Allied Healthcare Products Inc. 2.07 -0.01 -0.48 7,835

Comments

Emerging Growth

Relevium Technologies Inc.

Relevium Technologies Inc is engaged in the acquisition of products, technologies and businesses relating to musculoskeletal function, specifically Pain Relief, Injury Recovery and Active Performance.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

GoCoin

Blockchain currencies (e.g. Bitcoin) provide a new disruptive way to transfer value between parties over the internet as opposed to going through banks. GoCoin provides online merchants with a suite…