Travelers Companies (TRV) will raise its quarterly dividend by 3.5 percent to 88 cents per share in 2021. This comes after a dividend hike of 3.7 percent to $0.85 per share in 2020. Last year the insurance company hiked its dividend for the 16th consecutive year.

The next dividend is payable on June 30, 2021, to shareholders of record at the close of business on June 10, 2021. A new annual rate of $3.52 per share yields 2.3% at a stock price of $155.73. The ex-dividend date for the next Travelers dividend is June 9, 2021.

“These results, along with our strong balance sheet, enabled us to return $613 million of excess capital to our shareholders this quarter, including $397 million of share repurchases. In recognition of our strong financial position and confidence in our business, I am pleased to share that our Board of Directors declared a 4% increase in our quarterly cash dividend to $0.88 per share, marking 17 consecutive years of dividend increases with a compound annual growth rate of 9% over that period. The Board also authorized an additional $5 billion of share repurchases, said Alan Schnitzer, Chairman and Chief Executive Officer.

The Travelers Companies, Inc. provides commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals. The company's segments include Business and International Insurance; Bond & Specialty Insurance, and Personal Insurance. Travelers is incorporated as a general business corporation under the laws of the State of Minnesota and is one of the oldest insurance organizations in the United States, dating back to 1853. Travelers Companies was added to the Dow Jones Industrial Average Index in June 2009 together with Cisco Systems, replacing Citigroup and General Motors.