Old Republic International (ORI): A Strong Dividend Play with Growth Potential

Old Republic International (ORI) is a Finance stock with a 8.87% price change so far this year. The company pays a dividend of $0.29 per share, with a dividend yield of 2.94%. Its annualized dividend has increased 9.4% from last year and has a 5-year average annual increase of 6.70%. ORI expects solid earnings growth for 2025, with a Zacks Consensus Estimate of $3.25 per share, a 7.26% increase from the year ago period.

Old Republic International (ORI) Corp’s stock reached an all-time high of 39.89 USD on July 2, 2025, marking a significant milestone for the $9.68 billion market cap company. This achievement reflects a 23.49% increase over the past year, with a strong YTD return of 17.08%, underscoring the company’s robust performance and investor confidence [1].

According to InvestingPro analysis, ORI maintains a GREAT financial health score of 3.27, reflecting its robust financial position. The company’s earnings per share (EPS) for the second quarter of 2025 were $0.83, surpassing analysts’ projections of $0.81. Revenue also exceeded expectations, reaching $2.21 billion, compared to the anticipated $2.18 billion [1].

The stock’s ascent to this new peak highlights its strong market position and the positive sentiment surrounding its future prospects. ORI’s attractive P/E ratio of 10.91 and steady 2.94% dividend yield, maintained for 55 consecutive years, further enhance its appeal to investors [1].

In recent developments, ORI authorized a new $750 million share repurchase program. This initiative will commence after completing the remaining $162 million from its previous $1.10 billion program. Additionally, the company announced an increase in its quarterly dividend to 29 cents per share, payable on September 15, 2025. This adjustment will bring the annual dividend to $1.16 per share for 2025, reflecting a 9.4% increase from the previous year [1].

These strategic financial decisions underscore ORI’s commitment to shareholder value and its ability to navigate the financial landscape effectively. The company expects solid earnings growth for 2025, with a Zacks Consensus Estimate of $3.25 per share, a 7.26% increase from the year ago period [1].

While the stock's performance and dividend increases are promising, investors should be aware of potential challenges such as margin pressure in the Title Insurance business from lingering weakness in real estate markets and elevated expense ratios [2].

References:

[1] https://www.investing.com/news/company-news/old-republic-international-stock-hits-alltime-high-of-3989-usd-93CH-4207037

[2] https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/share-buyback-and-dividend-hike-might-change-the-case-for-in