Erie Indemnity’s (ERIE) Long Dividend Record Reflects Operating Consistency

Erie Indemnity Company (NASDAQ:ERIE) has been portion of the security manufacture since the 1920s. Over time, it has built a beingness crossed life, auto, home, and commercialized insurance, giving it a wide and established footprint.

In the 3rd quarter, the institution reported gross of $1.06 billion, up 6.0% from the aforesaid play past year. Growth came chiefly from higher absorption fees tied to argumentation issuance and renewals, which roseate 7.3% twelvemonth implicit year. Administrative services fees besides increased, climbing 9.8%, though from a smaller base. Investment income moved higher arsenic well, rising to $21.6 cardinal from $19.5 cardinal a twelvemonth earlier.

Like astir insurers, Erie Indemnity holds a ample float. Premiums are collected upfront and invested, which means results thin to determination with marketplace rates, including Treasury yields. One happening that sets the institution isolated is however it handled past downturns. During the Great Recession, Erie did not chopped its dividend. It continued to rise payouts done that period, preserving its semipermanent record.

That past matters. The institution operates successful a cyclical assemblage and remains exposed to economical slowdowns, but it has shown an quality to retrieve and support rewarding shareholders. Erie Indemnity Company (NASDAQ:ERIE) has present raised its dividend for 36 consecutive years.

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Disclosure: None.