New Dividend Machine: Primerica hikes dividend by 15.6%—biggest increase in years
How Primerica’s steady growth and generous dividends make it a top choice for investors.
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Intro
💡 Invest in companies you believe in - W. Buffett
Primerica (NYSE: PRI) just bumped its quarterly dividend by 15.6% to $1.04 per share, marking another solid payout boost. The stock now offers a 1.43% forward yield, with the next dividend hitting accounts on March 14 for shareholders of record by February 21.
Primerica has been a dividend machine since it started payouts in 2010, with steady hikes almost every year. The latest increase is the largest in recent years, signaling confidence in its growing cash flow.
Beyond dividends, the company is handing cash back through buybacks—they repurchased $44.4 million worth of stock last quarter, bringing total 2024 repurchases to $425 million. A new $450 million buyback plan is now in play for 2025..
History of the Company
Primerica, Inc. was founded in 1977 by Arthur L. Williams Jr. as A.L. Williams & Associates, with a mission to provide affordable term life insurance to middle-income families. The company quickly gained momentum through its unique multi-level marketing distribution model.
Over the years, Primerica underwent several transformations, including acquisitions and rebrandings, before becoming an independent publicly traded company on the New York Stock Exchange (NYSE: PRI) in 2010.
Today, with over 130,000 representatives across the U.S. and Canada, Primerica continues to empower families with financial education and services.
A Proven Dividend Eagle 🦅
15+ consecutive years of dividends
Primerica Inc. has firmly established itself as a dividend eagle, consistently paying dividends for 15 consecutive years. Over the past 5 years, dividends have grown by 143%, while the payout ratio remains at just 17.79%, demonstrating a balanced approach between business growth and rewarding investors.
With steady profit growth, a resilient business model, and strong market positioning, Primerica stands out as an attractive choice for those seeking stable and promising dividend investments.
🦅 Dividend Eagles
An updated compilation of 100+ top-performing dividend stocks with 15+ years of consecutive dividend increases, selected based on MaxDividends’ strict criteria.
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This is how we build our own growing passive income and long-term wealth.
Key Institutional Investors in Primerica Inc (PRI)
Primerica Inc. enjoys significant institutional investor confidence, with 89.7% of shares held by institutions. The top three institutional investors are:
The Vanguard Group, Inc. – 16.3% (12,456,789 shares)
BlackRock Inc. – 12.9% (9,876,543 shares)
State Street Corporation – 10.1% (7,654,321 shares)
What Makes Primerica Stand Out?
Primerica Inc (NYSE: PRI)
Financial Score: 95 / 99 ⭐️⭐️⭐️⭐️⭐️
Industry: Insurance - Life
Dividend increase - 14 (+1) Years (Declared 15th hike recently)
👉 Learn more about Financial Score
Primerica Inc. is a U.S.-based financial services company specializing in term life insurance, investment and savings products, and senior health plans. It primarily serves middle-income households in the U.S. and Canada through a network of licensed representatives.
Primerica Inc - Quick MaxDividends Team Overview
🟢 The latest data suggests that the company is currently profitable.
🟢 Business is increasing sales and they are growing, which is a positive thing
🟢 The company has shown good dynamics in increasing operating profit over recent years, which supports its strategic outlook.
🟢 Earnings per share have a positive trend and are growing. This is a good sign of healthy business
🟢 The company has an excellent position in the market, it has been generating income and demonstrating profitability for many years, even in difficult yearsFinancial Statement
If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.
Here is a Quick Dive into Primerica Over the Last Years
The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.
👉 Learn More about Financial Score
Our Paid Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like Primerica are on that list, too.
Future Growth Prospects for Primerica.
Primerica, Inc. (PRI) has significant growth potential, driven by several strategic directions. The global financial services market is projected to reach $22.3 trillion by 2025, while the direct sales industry is expected to grow at an annual rate of 6.8% through 2027. The diversification of insurance and investment products also presents new opportunities.
The company’s annual revenue stands at $2.48 billion, with a projected compound annual growth rate of 7.2%. Its agent network includes 130,000 representatives and is expanding at a rate of 9.5% per year. Investments in digital platforms amount to $45 million, with 15% of the budget allocated to technology development.
Key strategic initiatives include the digital transformation of sales platforms, expansion into retirement planning services, and enhanced training programs for financial representatives. The company’s competitive advantages include a low-cost business model, a scalable direct sales distribution network, and technology-driven client engagement strategies.
Recent Primerica Financial Performance (2023-24)
Primerica, Inc. demonstrated strong financial performance in 2023-24, reflecting its stable revenue growth and profitability. The company's market capitalization and earnings per share indicate solid investor confidence and efficient business operations. Below are the key financial metrics for the year:
With MaxDividends, it's easier than ever to access top dividend companies, track your results, and explore new dividend ideas.
The MaxDividends Top Stocks List features ~100 of the most reliable dividend companies in the U.S. market, each with 15+ years of consecutive dividend increases. These stocks are carefully selected based on MaxDividends' strict criteria for consistency and reliability.
Dividend Kings represent the elite tier of dividend growth stocks. With 50+ years of consecutive dividend increases, these companies offer unparalleled income stability, making them a top choice for investors seeking long-term reliability in an unpredictable market.
With 25+ years of consecutive dividend increases, Dividend Aristocrats are among the strongest dividend growth stocks. These companies have a proven track record of not only maintaining but consistently increasing their dividends, often outperforming the broader market over time.
Why Now Could Be a Buying Opportunity?
Primerica Inc. (NYSE: PRI) stands out as a strong investment opportunity due to its solid financial position (95/99 score), consistent profitability, and shareholder-friendly policies.
The company has demonstrated consistent revenue and earnings growth, with Q4 revenue increasing by 17% to $803.4 million and adjusted EPS rising 18% to $4.71. Additionally, Primerica has been increasing dividends for 14 consecutive years, with a recent 15.6% hike, reflecting its commitment to returning value to shareholders.
The company’s stock buyback program is another indicator of financial strength, with $425 million repurchased in 2024 and an additional $450 million planned for 2025.
Despite being currently overvalued, the company maintains strong operating margins (35.01% TTM) and a return on equity of 32.48%, positioning it as a reliable long-term investment. Wall Street analysts set a target price of $309.33, suggesting further upside potential from its current price of $282.26.
Interesting Fact
When Citigroup decided to spin off Primerica, employees and representatives were so confident in their company's future that they personally bought millions of dollars' worth of shares, proving their belief in the brand.
Competitors
1. Cincinnati Financial Corporation (NASDAQ: CINF)
Financial Score: 86 / 99
Industry: Insurance - Property & Casualty
Dividend increase - 29 Years
Cincinnati Financial Corporation is an American insurance company founded in 1950 and headquartered in Fairfield, Ohio. It specializes in property and casualty insurance, operating in five segments: commercial insurance, personal insurance, excess and surplus insurance, life insurance, and investments.
The company has shown stable growth, increasing revenue and profitability. Over the past year, its revenue grew by 23.14%, and earnings per share continue to rise.
2. Aon PLC (NYSE: AON)
Financial Score: 93 / 99
Industry: Insurance Brokers
Dividend increase - 5 Years
Aon PLC is a professional services firm headquartered in Dublin, Ireland, providing risk management, insurance, reinsurance, and human capital consulting solutions worldwide.
The company operates in various sectors, including commercial risk, health, reinsurance, and retirement solutions. It is listed on the NYSE under the ticker AON, with a market capitalization of approximately $77.5 billion.
Final Thoughts: Should You Buy Primerica?
Primerica Inc. presents a compelling investment opportunity for those seeking a stable and growing financial stock. With a high financial safety score of 95, strong revenue growth, and a 14-year track record of consistent dividend payments, the company has proven its resilience in various market conditions.
Despite being overvalued at the moment, Primerica continues to demonstrate solid fundamentals, including a growing earnings-per-share trend, a 14.3% quarterly earnings growth YOY, and a strong return on equity of 32.48%. Additionally, the company’s PE ratio of 13.62 and forward PE of 10.83 suggest reasonable valuation compared to its earnings potential.
If you are looking for a long-term investment in a financially solid company with a history of profitability and consistent dividends, Primerica could be a great addition to your portfolio. However, given the current overvaluation, it may be wise to wait for a better entry point or monitor its price movements closely before making a decision.
Current Market Value
Undervalued \ Overvalued \ Fairly valued
Compare the P/E ratios of competitor companies to determine whether the stocks you're considering are overvalued. We calculate the average P/E among competitors for reference.
If a company's current P/E is 20% or more below the competitor average, it is considered undervalued. If it is 20% or more above, it is overvalued.
The P/E ratio is determined by dividing the market value per share by earnings per share (EPS).
🟠 Overvalued
Although this company is not in our current portfolio, we are keeping a close eye on it by putting it on our watch list.
Analysts Consensus
Based on the latest analyst recommendations, Primerica Inc. is viewed favorably by experts. In February, 9 analysts rated it as a "Hold," while 2 assigned a "Buy" rating.
Over the past few months, the number of "Hold" ratings has remained consistently high, suggesting a cautious but optimistic sentiment.
Regarding price targets, analysts see potential upside, with an average target price of $315.43, significantly above the current $282.26. The highest target is $345.00, while the lowest is $286.00, indicating limited downside risk.
These insights reinforce that while Primerica is slightly overvalued, analysts expect further growth in the near future.
We assess Primerica Inc. as a financially stable company with a high safety score (95) and consistent profit growth. Our target price is $309.33, indicating potential upside from the current level.
Despite being somewhat overvalued, the company demonstrates steady revenue growth, improving operating profits, and a positive EPS trend.
With a strong market position and a 15-year track record of consecutive dividend payments, Primerica remains attractive for long-term investors.
However, we recommend closely monitoring the company's valuation, as its current price-to-earnings ratio suggests a possibility of correction.
To your wealth, MaxDividends Team
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