CINCINNATI, Aug. 15, 2011 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that the board of directors voted at its regular meeting on August 12, 2011, to increase the regular quarterly cash dividend from 40 cents to 40.25 cents per share, payable October 17, 2011, to shareholders of record as of September 21, 2011.
At the new level, the indicated annual dividend is $1.61 per share. In 2010, cash dividends paid were $1.585 per share and dividends declared were $1.59 per share.
Steven J. Johnston, president and chief executive officer, commented, "Cincinnati Financial has increased shareholder dividends in each of the past 50 years, and this board action maintains that record. Our capital management strategies balance the need for future capital to grow our business with the goal of returning capital to shareholders over time."While dividends remain our preferred method of returning capital, we also periodically repurchase shares, and thirdquarter repurchases to date have totaled approximately $10 million. We consider opportunities to repurchase when our stock price is attractive relative to book value, for purposes of offsetting dilution from stock-based incentive programs or returning additional capital to shareholders. "Our high levels of liquidity and capital help support consistent payment of shareholder dividends through periods of earnings pressure. At the end of June, we held more than $1 billion of cash and marketable securities at the parent company level." Cincinnati Financial Corporation offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life and disability income insurance, annuities and surplus lines property and casualty insurance. For additional information about the company, please visit www.cinfin.com . Safe Harbor Statement This is our "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this report. Some of those risks and uncertainties are discussed in our 2010 Annual Report on Form 10-K, Item 1A, Risk Factors, Page 24.
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