MGIC Investment Raises Quarterly Dividend 13.3% to $0.17

MGIC Investment Corporation raised its quarterly dividend 13.3% to $0.17 per share from $0.15. The shares traded ex-dividend on August 5, 2026, and the new rate lifts the annual dividend to $0.68 per share.

Why the dividend changed

MGIC’s dividend declaration did not give a detailed reason for the increase. The company’s subsequent results, however, showed profitable underwriting, a larger insured portfolio and substantial excess capital, providing the financial context for the board’s decision.

Second-quarter net income was $182.1 million, or $0.86 per diluted share, while adjusted net operating income was $183.7 million, or $0.87 per diluted share. New insurance written increased to $17.8 billion from $16.4 billion a year earlier, and insurance in force reached $304.8 billion from $297.0 billion. Net premiums earned declined to $238.1 million from $244.3 million, while the loss ratio moved to 4.6% from negative 1.2%. Chief Executive Tim Mattke said MGIC had “generated meaningful returns for shareholders” while strengthening its position. MGIC’s second-quarter results provide the figures and commentary.

Capital capacity was also central to the backdrop. MGIC ended June with $2.7 billion of assets above its private mortgage insurer eligibility requirements and $930 million of holding-company liquidity. It repurchased 6.6 million shares for $176.6 million during the quarter and authorized another $750 million of repurchases through December 31, 2028. The insurer also paid a $400 million dividend to the parent company, the principal source of cash used by the parent for common dividends, debt service and repurchases. The quarterly filing says the holding company has sufficient liquidity for its foreseeable payment obligations.

Dividend track record

The latest increase extends MGIC’s dividend-growth streak to five consecutive years. The annual total rose from $0.24 in 2020 to $0.28 in 2021, $0.36 in 2022, $0.43 in 2023, $0.49 in 2024 and $0.56 in 2025. Those totals show an uninterrupted annual progression, with increases of 16.7% in 2021, 28.6% in 2022, 19.4% in 2023, 14.0% in 2024 and 14.3% in 2025.

Recent quarterly payments show how that growth was delivered. MGIC paid $0.13 per share on the ex-dividend dates of November 7, 2024, February 18, 2025 and May 8, 2025. The rate then moved to $0.15 for the four payments through May 6, 2026, before increasing to $0.17 on August 5, 2026. The five-year annualized dividend growth rate is 18.5% annual growth. The last annual cut occurred in 2007, so the current streak follows an earlier break in the company’s record rather than a decades-long uninterrupted progression.

Is the dividend covered?

The dividend consumes 19% of earnings. That payout ratio indicates a substantial earnings cushion because most profit is retained after funding the common dividend. It also leaves room for the company’s other capital priorities, including regulatory capital, reinsurance and share repurchases.

SmarterDividends rates the dividend A with a safety score of 79. In plain terms, the A grade denotes a dividend viewed as very safe. The low earnings payout ratio and MGIC’s excess regulatory capital support that assessment, although mortgage-insurance results remain exposed to credit losses, delinquencies and conditions in the housing market.

Yield and valuation

At a share price of $29.20, MGIC’s forward yield is 2.32%. That is below the Financial Services sector median forward yield of 5.70%, so the shares provide less current dividend income than the sector midpoint despite the latest increase. At the new annual rate, 100 shares generate $68.00 of annual dividend income.

SmarterDividends estimates fair value at $48.44 and classifies the shares as undervalued, representing 63% upside to fair value. The shares have recorded an 8.3% gain over one year. These valuation figures are separate from the dividend-safety assessment and do not change the amount distributed per share.

What to watch

The next quarterly results will provide updated evidence on the operating factors supporting the dividend, particularly insurance in force, new insurance written, premium yield, delinquency inventory and credit losses. In the second quarter, the delinquency rate was 2.37%, compared with 2.21% a year earlier, while the insured portfolio continued to expand. Those measures affect earnings and regulatory capital available for shareholder distributions.

Capital allocation also remains important. MGIC’s 2025 annual report said share repurchases were expected to remain its primary method of returning capital during 2026. Investors can therefore track the balance among buybacks, the $0.17 quarterly dividend and liquidity retained at the parent. MGIC has also executed an excess-of-loss reinsurance transaction providing up to $168 million of coverage on eligible new insurance written in 2027, adding another element to its capital-management framework.