Allstate Announces Quarterly Dividend and Share Repurchase Authorization

Rhea-AI Summary

Allstate (NYSE: ALL) has announced significant shareholder returns through dividend increases and a new share repurchase program. The board approved an 8.7% increase in quarterly common stock dividend to $1.00 per share, payable April 1, 2025. Additionally, the company authorized a $1.5 billion share repurchase program effective through September 30, 2026.

The company also declared approximately $29.3 million in aggregate dividends on three series of preferred stock for the dividend period from January 15, 2025, through April 14, 2025, payable on April 15, 2025. CFO Jess Merten emphasized that these actions reflect Allstate's strong financial position and confidence in their strategy.

Positive

• 8.7% increase in quarterly dividend to $1.00 per share
• $1.5 billion share repurchase program authorized
• Strong financial position indicated by increased shareholder returns

Negative

• None.

Insights

Financial Analyst

Allstate's announcement of an 8.7% quarterly dividend increase to $1.00 per share alongside a $1.5 billion share repurchase authorization signals strong confidence in the company's financial trajectory despite industry headwinds.

The dividend increase translates to an annualized yield of approximately 2.1% at current share prices, positioning Allstate competitively among large-cap P&C insurers while maintaining a sustainable payout ratio. The $1.5 billion buyback authorization represents about 3% of Allstate's market capitalization, providing meaningful EPS accretion potential through 2026.

What's particularly telling is the timing of this capital return expansion. Property insurers continue facing elevated catastrophe losses and inflationary pressures on claims costs, yet Allstate's willingness to boost shareholder returns suggests management sees sufficient pricing power and underwriting improvements to sustain profitability. This comes after Allstate has implemented significant rate increases across multiple states to address loss cost trends.

The extended authorization timeframe through September 2026 provides management considerable flexibility to opportunistically repurchase shares during market volatility while maintaining adequate capital for growth initiatives and maintaining financial strength ratings. This balanced capital allocation approach aligns with Allstate's strategic focus on improving returns while investing in technology modernization and operational efficiency.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- The Allstate Corporation (NYSE: ALL) announced that its board of directors approved a quarterly common stock dividend of $1.00 on Feb. 26, 2025, which is an increase of $0.08, or 8.7%, per share compared to last quarter. Allstate also declared the payment of quarterly preferred dividends.

In addition, the board of directors has authorized a $1.5 billion share repurchase program of outstanding common stock. The authorization will remain in effect through Sept. 30, 2026.

"Today’s announcement reflects Allstate’s strong financial position and continued confidence in our strategy,” said Jess Merten, Allstate’s Chief Financial Officer. “The dividend increases combined with the new $1.5 billion share repurchase program demonstrate our commitment to delivering value for shareholders.”

Common Stock Dividends
Allstate declared a quarterly dividend of $1.00 on each outstanding share of the corporation’s common stock, payable in cash on April 1, 2025, to stockholders of record at the close of business on March 10, 2025.

Preferred Stock Dividends
Allstate also declared approximately $29.3 million in aggregate dividends on three series of preferred stock for the dividend period from Jan. 15, 2025, through April 14, 2025. All the preferred dividends are payable in cash on April 15, 2025, to stockholders of record at the close of business on March 31, 2025, as follows:

Series	Annual Dividend Rate	Quarterly Amount Per Depositary Share
Series H	5.100%	$0.3187500
Series I	4.750%	$0.2968750
Series J	7.375%	$0.4609375

Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226472880/en/

Nick Nottoli

(847) 402-5600

Allister Gobin

(847) 402-2800

Source: The Allstate Corporation

FAQ

What is the new quarterly dividend amount for Allstate (ALL) stock?

Allstate's new quarterly dividend is $1.00 per share, representing an 8.7% increase ($0.08) from the previous quarter.

How much is Allstate's new share repurchase program worth and when does it expire?

Allstate authorized a $1.5 billion share repurchase program that will remain in effect through September 30, 2026.

When will Allstate (ALL) pay its next quarterly dividend?

The quarterly dividend will be paid on April 1, 2025, to stockholders of record as of March 10, 2025.

How much is Allstate paying in preferred stock dividends for Q1 2025?

Allstate declared approximately $29.3 million in aggregate dividends on three series of preferred stock, payable April 15, 2025.