Allstate Shares Cross 3% Yield Mark

DividendChannel.com
July 18, 2011

According to DividendChannel.com, in trading on Monday, shares of Allstate Corp. (ALL) were yielding above the 3% mark based on its quarterly dividend (annualized to $0.84), with the stock changing hands as low as $27.68 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1998 — you would have paid $123.31 per share. Fast forward to 12/31/2010 and each share was worth $125.75 on that date, a mere $2.44 or 2% increase over all those years. But now consider that you collected a whopping $20.53 per share in dividends over the same period, increasing your return to 18.6%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.4%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Allstate Corp. (ALL) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Allstate Corp., looking at the history chart for ALL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.

ALL Dividend History


Date

Div*


05/26/11

0.210


03/09/11

0.210


11/26/10

0.200


08/27/10

0.200


05/26/10

0.200


03/10/10

0.200


11/25/09

0.200


08/27/09

0.200


05/27/09

0.200


03/11/09

0.200


11/25/08

0.410


08/27/08

0.410


03/12/08

0.410


11/28/07

0.380


08/29/07

0.380


05/30/07

0.380


03/07/07

0.380


11/28/06

0.350


08/29/06

0.350


05/26/06

0.350


03/08/06

0.350


11/28/05

0.320


08/29/05

0.320


05/26/05

0.320


03/09/05

0.320


11/26/04

0.280


08/27/04

0.280


05/26/04

0.280


02/25/04

0.280


11/25/03

0.230


08/27/03

0.230


05/28/03

0.230


02/26/03

0.230


11/26/02

0.210


08/28/02

0.210


05/29/02

0.210


02/26/02

0.210


11/28/01

0.190


08/29/01

0.190


05/29/01

0.190


02/26/01

0.190


11/28/00

0.170


08/29/00

0.170


05/26/00

0.170


02/25/00

0.170


11/26/99

0.150


08/27/99

0.150


05/26/99

0.150


02/24/99

0.150


11/25/98

0.135


08/27/98

0.135


05/27/98

0.135


02/25/98

0.135


11/24/97

0.120


08/27/97

0.120


05/28/97

0.120


02/26/97

0.120


11/25/96

0.106


08/28/96

0.106


05/29/96

0.106


02/27/96

0.106


11/28/95

0.098


08/17/95

0.098


* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.




According to the ETF Finder at ETF Channel, ALL makes up 4.04% of the iShares Dow Jones U.S. Insurance Index Fund ETF (IAK) which is trading lower by about 2.2% on the day Monday.

See what other ETFs contain ALL »

See what other stocks are held by IAK »

ALL operates in the Insurance Brokers sector, among companies like Everest Re Group Ltd (RE) which is trading flat today, and W.R. Berkley Corp. (WRB) trading lower by about 0.9%. Below is a three month price history chart comparing the stock performance of ALL, versus RE and WRB.

ALL,RE,WRB Relative Performance Chart
ALL,RE,WRB Relative Performance Chart