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United Fire’s stock rallies after dividend raised by 11%

United Fire Group Inc. said Wednesday it was raising its quarterly dividend by 10.7% to 31 cents a share from 28 cents a share. The property and casualty insurance company said the new dividend will be payable June 15 to shareholders or record on June 1. The stock rallied 2.0%, to be just below the May 9 record close of $52.29. At current prices, the new implied annual dividend rate would imply a dividend yield of 2.38%, compared with the yield for the SPDR S&P Insurance ETF of 1.71% and the implied yield for the S&P 500 of 1.93%. United Fire shares have fun up 14.3% year to date, while the insurance ETF has slipped 0.1% and the S&P 500 has eased 0.2%.

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