Enact Holdings Raises Quarterly Dividend 14.3% to $0.24

Enact Holdings increased its quarterly dividend to $0.24 a share from $0.21, a 14.3% raise. The increased distribution went ex-dividend on May 28, 2026, and lifts the annual dividend to $0.96 a share.

Why the dividend changed

Enact tied the increase to the strength of its financial position and confidence in its long-term outlook. Chief Executive Rohit Gupta said the company was balancing shareholder returns with the flexibility to serve customers, invest in the business and pursue longer-term opportunities. That framing makes the raise part of a broader capital-allocation policy, not a response to a split, merger, spin-off or other special situation. The dividend declaration contains the company’s explanation.

The operating backdrop at the time was supportive. Enact’s first-quarter results, released alongside the declaration, showed net income of $168 million and adjusted operating income of $172 million. Primary insurance in force was $272 billion, while the company reported PMIERs sufficiency of 162%, or about $1.9 billion above the regulatory requirement. New insurance written rose from the prior-year quarter even as management said affordability pressure and mortgage-rate volatility continued to shape housing activity.

The balance sheet was also funding more than the regular cash dividend. Enact was repurchasing shares under a new $500 million authorization, and its mortgage-insurance subsidiary continued to send capital to the holding company. Enact’s annual report says its priorities are to support existing policyholders, grow the mortgage-insurance operation, fund attractive new opportunities and then return capital to shareholders. The dividend increase fits within that sequence.

Dividend track record

The regular dividend has advanced in steps. Recent payments held at $0.185 through the February 21, 2025 ex-dividend date, increased to $0.21 beginning with the May 19, 2025 ex-dividend date, and moved to $0.24 beginning May 28, 2026. The August 20, 2026 distribution also went ex-dividend at $0.24. That progression supports three consecutive years of dividend growth.

Full-year totals require context because Enact’s earlier distributions included special dividends, as shown in its dividend history. The annual total rose 25.2% to $1.54 in 2022, then fell 13.6% to $1.33 in 2023 and fell 46.2% to $0.72 in 2024 as those special distributions rolled out of the comparison. The total recovered 14.0% to $0.82 in 2025. The underlying regular quarterly rate nevertheless kept climbing, making the per-payment sequence more useful than the annual totals for assessing the recurring dividend.

Is the dividend covered?

The dividend uses 18% of earnings. That is a modest claim on reported profit and leaves most earnings inside the business for insurance capital, growth, repurchases and other corporate needs. It also gives the regular payment room to absorb ordinary variability in earnings without consuming the majority of profit.

SmarterDividends rates the dividend A, with a safety score of 78. In plain terms, the grade classifies the payment as very safe. The assessment is consistent with the low earnings payout ratio and Enact’s regulatory capital cushion. The latest second-quarter update reported PMIERs sufficiency of 161%, or about $1.9 billion above requirements, while the board maintained the $0.24 quarterly rate.

Yield and valuation

At a share price of $47.91, the $0.96 annual dividend produces a 2.01% forward yield. That is below the Financial Services sector median forward yield of 5.70%. The comparison shows that ACT offers less current dividend income than the median sector stock, even after the 14.3% raise. For every 100 shares, the annualized dividend income is $96.00.

ACT has recorded a 35.6% gain over one year. SmarterDividends estimates fair value at $100.09 and classifies the shares as undervalued, representing 107% upside to that estimate. The fair-value measure is separate from dividend safety: valuation addresses the relationship between the share price and estimated worth, while the safety grade addresses the capacity to sustain the distribution.

What to watch

Enact’s next quarterly report will provide the clearest update on the variables behind dividend capacity: insurance in force, new insurance written, persistency, credit losses, reserve releases, investment income and PMIERs sufficiency. Mortgage affordability and interest-rate volatility remain central because they influence new originations and how long policies stay on the books.

Capital allocation is the other monitor. In the second-quarter update, Enact increased full-year capital-return guidance to a range of $550 million to $600 million, subject to business performance, market conditions and regulatory approvals. The company also had $345 million remaining under its repurchase authorization. Future dividends remain subject to quarterly board review, so the mix of buybacks, holding-company liquidity and capital retained by the insurance subsidiary will show how management is balancing the $0.24 payment with its other priorities.