HCI Group, Inc. : HCI-US: Dividend Analysis : November 17th, 2017 (record date) : By the numbers : November 17, 2017

Our analysis is based on comparing HCI Group, Inc. with the following peers – United Insurance Holdings Corp., Federated National Holding Company, Heritage Insurance Holdings, Inc., State Auto Financial Corporation, Erie Indemnity Company Class A, Universal Insurance Holdings, Inc., Donegal Group Inc. Class A, Hilltop Holdings Inc., Kingstone Companies, Inc. and Horace Mann Educators Corporation (UIHC-US, FNHC-US, HRTG-US, STFC-US, ERIE-US, UVE-US, DGICA-US, HTH-US, KINS-US and HMN-US).

HCI Group, Inc.’s dividend yield is 5.63 percent and its dividend payout is -71.43 percent. This compares to a peer median dividend yield of 2.37 percent and a payout level of 27.94 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking seeking good current dividend income within this peer group. In addition, the company’s relatively good dividend quality score of 67 out of a possible score of 100, underscores its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), HCI-US paid a medium quality dividend, which represents a yield of 4.47% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality, 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 21.58x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), HCI-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 4.39x), investing cash flow (coverage of -7.90x), issuance cash flow (coverage of 4.55x) and twelve-month prior cash (coverage of 21.53x), for a total dividend coverage of 22.58x.

HCI-US’s issuance cash flow includes outflows from net share buybacks (coverage of -2.84x). Thus, the total coverage including share buybacks is 25.43x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.79 1.86 2.8 3.46 3.26 5.63
Dividend Payout (%) 28.97 16.87 20.52 20.34 41.1 -71.43

A complete list of metrics and analysis is available on the company page.

Company Profile

HCI Group, Inc. holding company, which engages in the provision of property and casualty insurance, reinsurance, real estate, and information technology. The company was founded by Paresh Patel, Gregory Politis, and Martin A. Traber in 2006 and is headquartered in Tampa, FL.


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