MetLife Inc., a leading global life insurance company, announced on Tuesday that its board of directors has declared a dividend of 52 cents a share, which represents an increase of 4% from the first-quarter dividend. The company has consistently increased its common stock quarterly dividend at a compound annual growth rate of 9% since 2011. This increase in the dividend is primarily due to the company’s robust free cash flow generation, which enables it to invest in profitable growth and return capital to its shareholders with the aim of driving long-term value creation.
“Our strong free cash flow generation allows us to invest in profitable growth and return capital to our shareholders with the goal of driving long-term value creation,” said CEO Michel Khalaf in a press statement.
MetLife Inc. is a leading provider of insurance, annuities, and employee benefit programs, with operations in nearly 40 countries and holding leading market positions in the United States, Japan, Latin America, Asia, Europe, and the Middle East. The company was founded in 1868 and is headquartered in New York.
The increase in the dividend comes as MetLife has been experiencing revenue growth, particularly from its annuities and investment management divisions. The company’s investment management division has been growing steadily and continues to experience strong net flows and a growing asset base. In addition, the annuities division has seen significant sales growth through the introduction of new products and the expansion of distribution channels.
Moreover, MetLife has been implementing various cost-saving initiatives, which have positively impacted its bottom-line growth. The company has been working to optimize its business, consolidate systems, and improve operational efficiency to deliver high-quality products and services at a lower cost, while also enhancing shareholder value.
This year, the company has also completed the separation of its retail life insurance and annuity businesses, now named Brighthouse Financial, which was then spun off as an independent Fortune 500 company to shareholders. This move is expected to enable MetLife to focus on its core businesses and create two more focused and nimble organizations.
Furthermore, MetLife has been focused on expanding its global presence, particularly in the high-growth and under-penetrated markets of Asia, Latin America, and the Middle East. The company sees tremendous growth potential in these markets due to the growing middle class, increasing awareness about insurance, and low insurance penetration.
In addition to these strategic initiatives, MetLife’s strong financial position has enabled it to return capital to its shareholders consistently. The company’s capital position remains strong, with a high-quality investment portfolio and robust risk management practices. Its financial strength ratings, among the highest in the insurance industry, also serve as a competitive advantage and provide confidence to policyholders, investors, and regulators.
The dividend declared by MetLife will be payable on June 14 to shareholders of record as of May 9. This increase in the dividend is in line with the company’s commitment to shareholder value and demonstrates its confidence in the long-term growth prospects of the business.
Overall, MetLife’s focus on profitable growth, cost-saving initiatives, and expansion into high-growth markets, combined with its strong financial position and shareholder-friendly policies, are expected to continue driving long-term value creation for the company and its shareholders.
“We continue to believe in the long-term opportunities for MetLife, and the increase in our dividend reflects our commitment to creating long-term value for our shareholders,” added CEO Michel Khalaf.
MetLife shares were flat in the extended trading session following the announcement of the dividend increase, as the market had already factored in the likely increase in the dividend. The company’s stock has shown a steady upward trend over the past few months, reflecting investor confidence in its growth strategies and robust financial performance.
