Retirement Dividend Stocks: Old Republic International (ORI)
- Market cap: $4 billion
- Current dividend yield: 4.7%
- Payout ratio: 45% based on FY2013 earnings
- Dividend growth: 79% in 10 years, from 40.2 cents per share in 2003 to 72 cents last year
Though some might view Old Republic as a boring old insurance company, that’s actually a plus for dividend investors looking for stability. Old Republic started back in 1887 and has a long history and a diverse array of products that mean it has staying power.
And unlike an insurance stock like Allstate (ALL), which is actually paying a smaller dividend now than it did 10 years ago, ORI has been generous with its increases and has seen its payouts more than double since 2003. Looking forward, those increases should continue, too, given the low payout ratio as a percentage of total earnings.
This is a bit smaller than other dividend picks, so there could be a bit of short-term volatility at ORI. But the company seems to be a good bargain with a forward P/E of less than 10 right now and a valuation that is only slightly above book value.