2011 Second-Quarter Letter to Shareholders
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Cash Dividend Declared

Cincinnati Financial Corporation Increases Regular Quarterly Cash Dividend

Cincinnati, August 15, 2011 — 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 third‑quarter 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.”

This report contains forward-looking statements that involve potential risks and uncertainties. For factors that could cause results to differ materially from those discussed, please see the most recent edition of our safe harbor statement under the Private Securities Litigation Reform Act of 1995. To view or print the edition in effect as of this report's initial publication date, please view this document as a printable PDF.