Allstate's Profit Drops from Sandy Claims; Raises Dividend (ALL)

Allstate’s Profit Drops from Sandy Claims; Raises Dividend (ALL)


Insurance company, The Allstate Corporation(ALL) reported a drop in earnings for the fourth quarter due to expenses from Hurricane Sandy claims.

The Northbrook, IL based company reported fourth quarter earnings of $394 million, or 81 cents per share, down -45% from $712 million, or $1.40 per share last year. Excluding special items, earnings were $289 million, or 59 cents per share, from $735 million, or $1.45 last year.

Operating income was 59 cents per share. Analysts had estimated the company to see a loss of 5 cents per share, expecting the company to take more of a hit from Hurricane Sandy claims.

Allstate said that they received 170,000 claims from Sandy, costing the company $1.12 billion.

Although the company saw a significant drop in earningsduring the quarter, they have increased their dividend from 22 cents to 25 quarterly. This dividend will be payable on April 1 to shareholders of record on February 28.

Allstate also reported that they will be buying back $1 billion worth of shares

Allstate shares were up $2.19, or 4.94% during premarket trading Thursday. The stock has increased 44% in the past year.

The Bottom Line
Shares of The Allstate Corporation(ALL) will now have a 2.26% yield, based on the higher dividend payout and Wednesday’s closing price of $44.31.

The Allstate Corporation(ALL) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today