Allstate Shares Cross 3% Yield Mark

Forbes

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.

View photo

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ALL,RE,WRB Relative Performance Chart

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