CINCINNATI, April 4 /PRNewswire-FirstCall/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that the company's common stock will begin trading today at a price adjusted to reflect a previously announced 5 percent stock dividend.
As stated in February, the board of directors declared a 5 percent stock dividend to be distributed April 26, 2005, on shares outstanding and of record on April 6, 2005. This is the 29th stock dividend or split declared over the past 48 years. In addition, the board of directors increased the regular quarterly cash dividend 10.9 percent to 30-1/2 cents per share, payable April 15, 2005, to shareholders of record on March 25, 2005.
Per Securities and Exchange Commission and Nasdaq guidelines, April 4 is the ex-dividend date for the stock dividend. When trading opens, the common stock price and all historic stock price data will be adjusted by 5 percent. On April 26, holders of the common stock prior to today will receive the 5 percent stock dividend. Beginning today, purchasers of the company's shares will pay the lower split-adjusted price and will not receive the dividend shares.
Chairman and Chief Executive Officer John J. Schiff, Jr., CPCU, commented, "The board currently intends to continue the new 30-1/2 cents per share quarterly dividend for the next three quarters on the higher number of shares outstanding following the stock dividend. This would result in a 15 percent increase in the indicated annual cash dividend in 2005, the 45th consecutive year of higher cash dividends. The board's commitment to steady cash dividend increases contributed to Cincinnati Financial's 10.8 percent compound annual return to shareholders for the five years ended December 31, 2004, compared with a negative 2.3 percent return for the Standard & Poor's 500 Index."
After taking into account the 2005 stock dividend, the indicated annual dividend for this year will be $1.20-1/2 per share. Adjusted for the 2005 and 2004 stock dividends, cash dividends declared in 2004 were $1.05 per share, up from 90-1/2 cents in 2003.
Cincinnati Financial Corporation offers property and casualty insurance, its main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life and disability income insurance and annuities. CFC Investment Company offers commercial leasing and financing services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals. For additional information about the company, please visit www.cinfin.com .
SOURCE Cincinnati Financial Corporation
/CONTACT: Investors, Heather J. Wietzel, +1-513-870-2768, or Media,
Joan O. Shevchik, +1-513-603-5323, both of Cincinnati Financial Corporation/
/Web site: http://www.cinfin.com /
(CINF)