Daily Dividend Update: ORI, HRL, BBY, OBT, ADI
Hormel Foods Dividend Increase: Hormel Foods announced a 1% increase in its quarterly dividend, raising the annualized rate to $1.17 per share, marking the 60th consecutive annual increase and the 390th quarterly dividend payment since going public in 1928.
Best Buy Dividend Declaration: Best Buy's board has authorized a quarterly cash dividend of $0.95 per share, set to be paid on January 6, 2026, to shareholders of record by December 16, 2025.
Orange County Bancorp Dividend Announcement: Orange County Bancorp declared a $0.18 cash dividend per share, with a $0.05 increase, to be paid on December 16, 2025, to shareholders of record on December 4, 2025.
ADI Dividend Declaration: The ADI Board of Directors declared a quarterly cash dividend of $0.99 per share, scheduled for payment on December 22, 2025, to shareholders of record by December 8, 2025.
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- Lemonade Stock Surge: Lemonade (LMND) saw a 16% increase in stock price during the five trading sessions ending January 23, 2026, becoming the best-performing financial stock over $2B market cap, driven by the launch of its self-driving car insurance for Tesla FSD.
- XP Investment Bank Gains: Brazilian investment bank XP (XP) also rose 16% in the same period, reflecting market confidence in its business model amidst fluctuating economic data and corporate earnings.
- Sprott and WisdomTree Rise: Canadian asset manager Sprott (SII) and WisdomTree (WT) both advanced 15%, indicating sustained investor interest in the financial services sector despite increased market volatility.
- Old Republic International Decline: Old Republic International (ORI) fell 12% after reporting worse-than-expected Q4 2025 earnings, highlighting weak specialty insurance underwriting results that may impact its future market performance.

- Lackluster Revenue Growth: Old Republic International reported fourth-quarter revenue of $2.39 billion, a 19% year-over-year increase, yet it fell short of analysts' expectations of $2.31 billion, raising concerns about its growth potential.
- Decline in Net Operating Income: The company's net operating income dropped to approximately $185 million ($0.74 per share), down from $227 million in Q4 2024, indicating a significant weakening in profitability.
- Deteriorating Combined Ratio: Old Republic's combined ratio increased to 96% from 92.7% a year ago, suggesting a decline in underwriting profitability, which prompted negative reactions from investors.
- Poor Segment Performance: Despite an increase in title insurance revenue to over $47 million, the underwriting losses in specialty insurance and other segments deepened, putting pressure on overall profitability and leading investors to adopt a cautious outlook on future performance.

- Financial Performance: In Q4 2025, Old Republic International reported net operating income of $185 million and earnings per share of $0.74, reflecting a decline from $227 million last year, yet achieving a full-year net operating income of $1 billion, indicating stability in the market.
- Insurance Segment Growth: The Specialty Insurance segment saw net premiums earned increase by 8.3% in Q4, surpassing $5 billion for the first time in the year, with quarterly operating income of $178 million and a combined ratio of 93.2%, showcasing strong performance in the insurance market.
- Capital Return Initiatives: The company announced over $1 billion in capital return for 2025, including $700 million in dividends and $56 million in share repurchases, demonstrating a strong commitment to shareholders and effective capital management.
- Future Outlook: Management anticipates maintaining a combined ratio of approximately 93.2% in Specialty Insurance for 2026, with commercial insurance expected to grow by 15% to 20%, while residential insurance is projected to see less than 10% growth, reflecting a cautiously optimistic view of future market conditions.

- U.S. Stock Market Performance: Stock indexes in the U.S. closed higher on Thursday, indicating a positive market trend.
- Index Gains: The S&P 500 gained 0.91%, the Dow Jones rose 0.63%, and the Nasdaq increased by 0.55%.
- Small Cap Performance: By 1:40 p.m. in New York, the Russell 2000 surged 1.1% to 2,730 points, reaching a record high and extending its year-to-date gains to 10%, reflecting strong investor confidence in small-cap stocks.
- Strong Macro Data: The U.S. GDP growth rate for Q3 was revised up to 4.4% annualized, from 4.3%, accelerating from 3.8% in Q2, indicating robust economic recovery that could drive increased business investment and consumer spending.
- Contained Inflation Pressures: The Personal Consumption Expenditures price index rose 2.8% year-over-year, with core PCE steady, suggesting that inflation remains manageable, which enhances market confidence in the Federal Reserve's policies and may help maintain a low interest rate environment.
- Tech Stock Rebound: Meta Platforms saw a more than 5% increase in stock price after Jefferies highlighted its attractive valuation, further boosting investor interest in tech stocks, potentially leading to increased capital inflows into the sector.

- Rating Downgrade: Piper Sandler downgraded Old Republic International (ORI) from Overweight to Neutral, reflecting the insurer's ongoing struggles with commercial auto loss cost inflation, with analyst Paul Newsome advising investors to avoid companies with loss reserve or trend issues.
- Earnings Forecast Adjustment: In its Q4 earnings release, Old Republic reported a ~3 percentage point increase in the 2025 commercial auto initial accident-year loss ratio due to rising loss trends in the liability portion of long-haul trucking case reserves, leading to a 12 percentage point increase in the Q4 loss ratio, indicating potential financial strain.
- Price Target Cut: Piper trimmed its price target for ORI from $51 to $38, reflecting diminished optimism about its specialty underwriting segment and suggesting that the company may face operational challenges in a softening market.
- Market Reaction: Old Republic's stock slid 11% in Thursday midday trading, diverging from the average Wall Street Buy rating, highlighting investor concerns regarding the company's future profitability.







