Monday, May 4, 2015

Maiden Holdings Ltd. MHLD next 2015 Dividend Machine

Nothing is certain but death and taxes and some say insurance.   This post is not about taxes or death but it is about insurance.

Insurance stocks have been good performers over time especially for income investors.   Re-insurance is a special type of insurance where the insurer insures other insurers.  Lloyd’s of London is probably the best known of these types of companies but we have one for you to consider for the income producing portion of your portfolio that is affordable and available.

The next 2015 Dividend Machine is Maiden Holdings, Ltd., symbol MHLD.

Maiden Holdings

MHLD operates in the U.S., Europe and other global areas to provide property and casualty insurance with re-insurance as a major portion of their business.

April 28th, MHLD declared their next quarterly dividend of $.13 payable on July 15, to those on record July 1.   

MHLD is a small cap company with a valuation of $1.07 billion.  It is not an expensive stock.  MHLD closed today at $14.69.    MHLD was a Dividend Machine in 2014.

Dividend Increases

One of the characteristics of MHLD is the dividend growth.   Dividend growth has averaged about 20% for the past 5 years.  Dividends have been paid since 2008.  This is not a very long duration of dividend payout like Travelers, symbol TRV.    TRV has raised an average of 13.88% over the past year but the yield is only 2.15%.  Currently the dividend yield for MHLD is 3.56%

Dividend Machine Fundamentals

The table below presents the dividend machine fundamentals for Maiden Holdings Ltd.  Earnings over the past four quarters were $1.00 with the dividend payout of $.52.   This is a good coverage ratio.  D/E ratio is .39 and that is very acceptable.

MHLD is not a volatile stock and covered calls are rarely traded.   As a plain old Dividend Machine at an affordable cost, MHLD should be considered for the income producing portion of your portfolio.


Disclosure:  no position but may add