Erie Indemnity Company (ERIE) will hike its dividend by 7.3 percent to $1.035 per share quartertly and pay a special dividend of $2.00 per share. Last year ERIE raised its quarterly dividend by 7.2 percent to $0.965 per share in the first quarter of 2020. The management company has paid regular shareholder dividends since 1933.

From the company's press release (December 8, 2020): The Board agreed to maintain the current management fee rate paid to Erie Indemnity Company by Erie Insurance Exchange at 25 percent, effective Jan. 1, 2021. The management fee rate was 25 percent for the period Jan. 1 through Dec. 31, 2020. The Board has the authority under the agreement with the subscribers (policyholders) at Erie Insurance Exchange to set the management fee rate at its discretion; however, the maximum fee rate permissible by the agreement is 25 percent. This action was taken based on the Board's consideration and review of the relative financial positions of Erie Insurance Exchange and Erie Indemnity Company.

The Board also agreed to increase the regular quarterly cash dividend from $0.965 to $1.035 on each Class A share and from $144.75 to $155.25 on each Class B share. This represents a 7.3 percent increase in the payout per share over the current dividend rate. The next regular quarterly dividend is payable Jan. 20, 2021, to shareholders of record as of Jan. 5, 2021, with a dividend ex-date of Jan. 4, 2021.

The Board also declared a special one-time cash dividend of $2.00 on each Class A share and $300.00 on each Class B share.  This special cash dividend is payable Dec. 29, 2020, to shareholders of record as of Dec. 21, 2020, with a dividend ex-date of Dec. 18, 2020.

A new annualized dividend rate of $4.14 per share yields 1.6% at a stock price of $233. Erie Indemnity has now raised its dividend 30 consecutive years.

Erie Indemnity Company is a management company. Erie Insurance Exchange pays a management fee to Erie Indemnity Company. Erie Insurance Group, based in Erie, Pennsylvania, is a homeowners insurer and automobile insurer in the United States. Also the company is a property/casualty insurer in the United States. Erie Indemnity Company has paid regular shareholder dividends since 1933.