Press Release:
Press Release
News Article February 2005
- 15.0% rise in indicated annual cash dividend rate
- Board sets stage for 45th consecutive year of higher dividends
CINCINNATI, Feb. 7 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (NASDAQ:CINF) today announced that the board of directors voted at its regular meeting on February 5, 2005, to increase the regular quarterly cash dividend 10.9 percent to 30-1/2 cents per share, payable April 15, 2005, to shareholders of record on March 25, 2005.
In an additional action, the board declared a 5 percent stock dividend to be distributed April 26, 2005, on shares outstanding and of record on April 6, 2005. This is the 29th stock dividend or split declared over the past 48 years. After the stock dividend, one Cincinnati Insurance share purchased in 1950 will have grown to 2,146 Cincinnati Financial shares, with stock dividends retained and cash dividends not reinvested.
The board currently intends to continue the new 30-1/2 cent per share quarterly dividend throughout 2005 on the higher number of shares outstanding following the stock dividend. After taking into account the 2005 stock dividend, the indicated annual dividend rate for this year will be $1.20-1/2 per share. Adjusted for the 2005 stock dividend, cash dividends declared in 2004 were $1.05 per share, up from 90-1/2 cents in 2003.
Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, "Cincinnati Financial reported outstanding results for 2004, with net income rising 56.0 percent to a record $584 million. These results reflected the favorable market trends of the past several years, careful attention to underwriting and the sustained efforts of our independent agents and associates. The board of directors has long believed in following a dividend policy that rewards shareholders with steadily increasing cash dividends and stock splits and dividends. Today's actions signal the board's continuing confidence in the company's future."
Cincinnati Financial's common stock total return to shareholders over the five years ended December 31, 2004, was a positive 10.8 percent annually compared with a negative 2.3 percent annual total return for the Standard & Poor's 500 Index.
Cincinnati Financial Corporation offers property and casualty insurance, its main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life and disability income insurance and annuities. CFC Investment Company offers commercial leasing and financing services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals.
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