Progressive Corp.: From Mild-Mannered To Wild-Eyed Optimist

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About: The Progressive Corporation (PGR)
by: Benjamin Black
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Benjamin Black
Value, long-term horizon, dividend investing, growth at reasonable price
Summary

PGR has experienced accelerated revenue and earnings growth over the last few years, greatly outpacing the market and peers in the process.

Share price performance has matched that growth, and trailing shareholder returns are very high over the last few years, mostly from said earnings growth.

Management has recently changed its stated dividend policy (in effect lowering the payout) citing the need for more capital flexibility as it sees better opportunities for growth.

Introduction

Progressive Corporation (PGR) is one of the largest auto insurers in the U.S. and a company experiencing a recent surge in both income and share price in recent years. The stock has