Allstate lifts quarterly dividend 5%, first increase since 2008

Allstate Corp., the largest publicly traded U.S. home and auto insurer, raised its dividend for the first time since 2008 after posting a seventh straight quarterly profit.

The dividend was boosted 5 percent to 21 cents a share from 20 cents, Northbrook, Illinois-based Allstate said today in a statement. Stockholders of record on March 11 will receive the payouts on April 1.

Net income in the fourth quarter slipped to $296 million, or 55 cents a share, from $518 million, or 96 cents, a year earlier, Allstate said in a Feb. 9 statement. Chief Executive Officer Thomas Wilson said the insurer has $3.8 billion in cash and liquid securities to fund dividends and share repurchases. Allstate announced a $1 billion share-buyback program on Nov. 9.

“If we don't have a use for the capital, we give it back to the shareholders,” Wilson said in a conference call on Feb. 10. “When we're done with this one, if we still have extra capital, we'll consider doing another one.”

Allstate last announced a dividend increase in February 2008, when the payout was boosted to 41 cents a share from 38 cents. The dividend was cut to 20 cents a year later after three straight quarterly losses.

Allstate declined 24 cents to $31.87 at 3:01 p.m. in New York Stock Exchange composite trading, and has advanced about 1.5 percent in the past 12 months.