MetLife Spikes on First Dividend Hike in Six years

Michael Teague  |

Shares 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 necessarily 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.


Discover: Trending Events

United Nations
Blockchain for Europe
Humanity 2.0
World Economic Forum

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG