Q: Does the recent 10% dividend increase signal a strong earnings report is ahead? Some brokers have a $52 price target. good time to add?
5i Research Answer:
We like PRL and would be comfortable buying, but we would not buy it just for one quarter. On average, a dividend hike is a positive sign of confidence. On occasion, though, it is an olive branch to shareholders to make up for disappointing numbers. But PRL has a very good record of dividend hikes, and we are not particularly concerned about the upcoming quarter.