Fidelity National Financial, Inc.’s FNF board of directors approved a 4% hike in cash dividend to 50 cents. Shareholders, as of the close of business on Dec. 17, 2024, will receive the quarterly dividend on Dec. 31, 2024.

FNF’s distribution of wealth to shareholders via dividend hikes is impressive. Fidelity National has increased dividends at a 10-year CAGR of 9.7%. The dividend yield is 3.2%, better than the industry average of 0.3%.

Fidelity National enjoys a scale advantage, given its market-leading position in residential purchase, refinance and commercial markets. Its scale and volume fuel revenues and lower costs provide a competitive advantage. Real estate-related businesses complement its core title business. The title insurer’s strategic move to buy F&G Annuities & Life, a leading provider of annuity and life insurance concentrated in the middle-income market with a diversified growth strategy, shields it from the volatility integral to the core title insurance business. Fidelity National is investing in technology to widen its market-leading position.

Solid retail annuity sales and F&G's presence in institutional markets benefit assets under management. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings.
These positives should help the title insure retain the dividend hike streak.

Shares of FNF have gained 18.1% year to date, compared with the industry’s 30% increase. Market share growth, solid margin, competitive advantages, strong track record of technology innovation and wealth distribution should help this title insurer trend higher.

Image Source: Zacks Investment Research

FNF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Shareholder-Friendly Moves in the Insurance Space

Given a solid capital level in the insurance industry and an improving operating backdrop favoring strong operational performance, insurers like RLI Corp. RLI, Selective Insurance Group, Inc. SIGI and American Financial Group, Inc. AFG have resorted to effective capital deployment to enhance shareholders’ value.

RLI Corp.’s board of directors approved a special cash dividend of $4.00 per share. This specialty property-casualty insurer has been paying special dividends since 2011. The latest approval marks the 15th straight special dividend.RLI’s diversified product portfolio, strong local branch-office network, focus on specialty insurance lines growth via organic opportunities and acquisitions and financial strength should continue to help boost shareholders’ returns.

The board of directors of Selective Insurance authorized a 4% increase in the quarterly cash dividend to 38 cents per share in October 2024. Such steadfast endeavors buoy confidence among investors, making it an attractive pick for yield-seeking investors. Its dividend yield of 1.4% appears attractive compared with the industry average of 0.2%.

In November 2024, American Financial declared a special cash dividend of $4.00 per share in the third quarter, the aggregate amount of this special dividend will be approximately $335 million.  American Financial Group’s 2.3% dividend yield is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. AFG’s robust operating profitability at the property and casualty segment and effective capital management support shareholder returns.