With an annual dividend yield of 5.21%, Lincoln National Corporation (NYSE:LNC) is included among the 10 Best Dividend Stocks with 5%+ Yields and Growing Cash Flows.
On May 14, UBS raised its price recommendation on Lincoln National Corporation (NYSE:LNC) to $39 from $37. It reiterated a Neutral rating on the shares. The firm said it updated its model following the company’s Q1 earnings report.
Lincoln Financial Group said first-quarter results reflected continued execution across the business. Chairman, President, and CEO Ellen Cooper stated that adjusted operating income increased 16%, marking the company’s seventh consecutive quarter of year-over-year growth. She added that Lincoln remains focused on strengthening its capital position, improving its operating model, and driving profitable growth across its businesses.
Cooper also pointed to changes within the annuities segment. She said total sales reached $3.9B, with spread-based products making up 64% of sales as the company continues working toward a more balanced business mix with lower market sensitivity. She added that variable annuity sales declined from the prior year, which aligned with Lincoln’s longer-term strategy to reduce exposure to market volatility.
In the life insurance segment, Cooper said first-quarter sales rose more than 30% year over year to $129M. She noted that the stronger sales momentum would take time to contribute meaningfully to earnings and free cash flow.
Executive Vice President and CFO Christopher Neczypor said the quarter’s results were supported by underwriting performance and investment income. He stated that adjusted operating income available to common stockholders totaled $326M, or $1.66 per diluted share. Neczypor also noted that the quarter included two normalizing items, including alternative investment performance and a one-time $7M unfavorable tax-related impact.
Lincoln National Corporation (NYSE:LNC) is a holding company that operates insurance and retirement businesses through subsidiary companies. Its operations are organized into four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
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