Photo courtesy stockmonkeys.com.
About Old Republic International Corporation
Old Republic International Corporation provides specialty insurance products to a variety of businesses and industries. Although the company’s primary focus is on the transportation and financial industries, Old Republic provides other types of insurance through its multiple subsidiary operating centers, including title insurance and home warranties.
Nearly 23% of Old Republic’s gross underwriting volume comes from the transportation industry, with 18% from the trucking industry and the remainder from the aviation, auto warranty and travel insurance lines. Another 10% of Old Republic’s underwriting volume comes from the contracting industry.
Old Republic has 19 subsidiary operating centers. Significant contributors to Old Republic’s insurance revenue include Great West Casualty Company (commercial transportation liability and physical damage insurance), PMA Companies, Inc. (property and casualty risk products), Old Republic Construction Program Group (insurance for trade contractors and large construction projects), and BITCO Insurance Companies (workers compensation, commercial auto and general liability for the forest products, oil & gas, and construction industries).
The company is a member of the S&P Mid Cap 400 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol ORI.
Old Republic International’s Dividend and Stock Split History
Old Republic International has paid dividends since 1941 and increased them since 1982. The company traditionally announces dividend increases in February, with the stock going ex-dividend in March.
Most of the Old Republic’s dividend increases have been miniscule. The company has compounded its payout at an average rate of 1.6% over the last 5 years and 1.5% over the last 10 years.
Old Republic International has split its stock 7 times in the last 25 years. These included three 3-for-2 splits in May 1996, May 1998 and December 2003, a 2-for-1 split in May 1992, an 11-for-10 split in April 1991, and a 105-for-100 split in April 1990. The most recent stock split was in December 2005 when Old Republic split its stock 5-for-4. For each share of Old Republic stock you owned in April 1990, you would now have nearly 9.5 shares of Old Republic stock.
Old Republic International’s Direct Purchase and Dividend Reinvestment Plans
Old Republic has both direct purchase and dividend reinvestment plans. Like most plans, there are fees associated with both share purchases and sales. As a new investor, you’ll need to open an account with a minimum of $1000 and you’ll pay a setup fee of $15. Any additional direct purchases must be at least $100. You’ll be assessed a service fee of $5 plus a brokerage commission of 6 cents per share on all direct purchases by check. For direct purchases through automatic bank debits, the fees are $3.50 for an individual debit and $2 per debit when you set up a monthly purchase plan. There are no fees when buying shares by reinvesting dividends.
When you go to sell your shares, you’ll pay a service fee of $15 per sale plus a brokerage commission of 12 cents per share. You’ll also be assessed a $5 service fee to have the sales proceeds directly deposited to your bank account.
Helpful Links
Old Republic International’s Investor Relations Website
Current quote and financial summary for Old Republic International (finviz.com)
Information on the direct purchase and dividend reinvestment plans for ORI