(GNW) - Board of Directors approved a 20% increase in the company's quarterly dividend

Genworth Financial, Inc. (GNW) exceeded analysts' earnings expectations for six consecutive quarters by an average margin of 7.3%. After releasing solid results for the second quarter, the company raised its 2006 earnings per share guidance. On Sep 20, the Board of Directors announced a 20% increase in the company's quarterly dividend. GNW has a current dividend yield of 0.86%. Full Analysis Genworth Financial, Inc. is a leading provider of domestic and international mortgage, long-term care and payment-protection insurance. The company also sells individual and group life insurance and retirement products. When GNW reported earnings for the second quarter of 2006, it marked the sixth straight quarter in which the company beat analysts' expectations. GNW's average margin of surprise over the past six quarters was 7.3%. In its most recent quarter, the company surprised to the upside by 5.9% when it posted profits of 72 cents per share. It also represented a 20.0% year-over-year improvement. Total revenues grew to $2.76 billion from $2.61 billion. The company experienced solid growth across its various insurance segments including 9% growth in its term life sales, while universal life sales more than doubled. Individual long-term care sales jumped 8%. Based on GNW's impressive second quarter, it raised its earnings per share guidance for the full year of 2006. The company now expects profits between $2.75 and $2.85 per share, versus its previous outlook which called for earnings per share between $2.65 and $2.75. GNW repurchased 2.2 million shares during the second quarter for approximately $74 million. Through June the company bought back $553 million worth of an authorized $750 million repurchase program. GNW plans to buy back the remaining $197 million by year end. On Sep 20, the Board of Directors approved a 20% increase in the company's quarterly dividend to nine cents per share. The company cited the strength of its businesses, ongoing solid financial performance and progress on growth initiatives and execution across all lines of its business as fueling the increase. GNW has a current dividend yield of 0.86%. The dividend will be paid on Oct 27 to shareholders of record as of Oct 12. GNW's return on equity of 10%, a common measure of a company's profitability, is in line with the industry average. GNW increased profits for the past two years, most recently by 5.5% in 2005. The company has stated that it aims to raise its ROE to 12% in 2008. GNW is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home