American International Group Increases Dividend Despite Financial Woes

American International Group (AIG), a large insurance and financial services company, raised its dividend even as its earnings tumbled and its stock declined from $71.46 (June 1, 2007 close) to $29.74 (June 25, 2008 close), a 58.38 percent decline.

Its quarterly dividend of 22 cents (payable on September 19, 2008), up ten percent, represents a 3 percent dividend yield.

AIG has a long record of increasing its dividend as shown in the chart of quarterly dividends.

Currently, AIG is trading on a steep price downside (chart).

I (RAH) do not own AIG.

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Posted June 26, 2008.