At a glance
MGIC Investment Corp is worth $5.80B, about 9 times its fiscal 2025 earnings. Revenue grew 0.5% to $1.21B in fiscal 2025, with 60.8% kept as profit; over 5 years it has grown 0.2% a year. It pays a 2.19% dividend yield, raised every year for at least 5 years, and returned $2.96B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +7.9% over the past year with dividends reinvested and +14.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 60.6% in the 2020 crash (S&P 500: 33.7%) and 30.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 12 months after the lows.
The business in plain English
MGIC Investment Corp is a holding company based in Milwaukee. Its main subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), provides private mortgage insurance. This insurance covers some or all of a lender's loss when a homeowner stops paying a home loan. The company says it founded the modern private mortgage insurance industry in 1957. MGIC is licensed in all 50 states, the District of Columbia, Puerto Rico and Guam.
Its customers are mortgage lenders. Fannie Mae and Freddie Mac are the government-sponsored enterprises (GSEs) that purchase home loans from lenders. They cannot take on low down payment mortgages without extra credit protection, so lenders obtain this coverage. Most of MGIC's new policies cover loans the GSEs purchase, so their rules shape the business. Rivals include the Federal Housing Administration (FHA), which backed 34.3% of insured low down payment mortgages in 2025, and other private insurers.
MGIC earns premiums for carrying this risk and also earns income by investing the money it holds. Revenue totaled $1.2 billion in 2025, and that year it wrote $60.2 billion of new primary insurance. As of December 31, 2025, it insured $303.1 billion of mortgages. Its maximum exposure to claims on those loans, called risk in force, was $81.2 billion. It shares part of that risk with reinsurers, which are insurers for insurers. The 10-K does not split revenue by segment or region.
Price history
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MTG +7.9% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $295.4M, down 2.9% from a year earlier, and net income was $182.1M (-5.4%).
- For fiscal 2025, revenue was $1.21B (+0.5% year over year; +0.2% a year from FY2020 to FY2025) with a 60.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +0.2% watch |
|---|---|
| Free cash flow margin | 70.2% good |
| Return on equity (FY2025) | 14.3% watch |
| Return on assets (FY2025) | 11.1% good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.20B | $446.1M | $729.0M |
| FY2021 | $1.19B | $635.0M | $692.2M |
| FY2022 | $1.17B | $865.3M | $646.8M |
| FY2023 | $1.16B | $712.9M | $711.0M |
| FY2024 | $1.21B | $763.0M | $723.9M |
| FY2025 | $1.21B | $738.3M | $851.8M |
Valuation snapshot
| Market value | $5.80B |
|---|---|
| P/E ratio | 9 |
| Dividend yield | 2.19% |
Rank among 1514 US companies
Market value at each year end
MGIC Investment’s market value went from $3.47B at the end of 2016 to $5.80B on Oct 28, 2026, up 67%; since the end of 2025 it is down 11%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $5.80B | -11.3% |
| 2025 | $6.54B | +8.8% |
| 2024 | $6.01B | +12.3% |
| 2023 | $5.35B | +38.5% |
| 2022 | $3.86B | -17.8% |
| 2021 | $4.69B | +10.5% |
| 2020 | $4.25B | -14.0% |
| 2019 | $4.94B | +30.6% |
| 2018 | $3.78B | -27.7% |
| 2017 | $5.23B | +50.6% |
| 2016 | $3.47B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MTG price data to Oct 28, 2026 | -1.6% | +7.9% | +22.5% | +14.5% | +15.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -1.6% |
| 2025 | +25.9% |
| 2024 | +25.7% |
| 2023 | +52.5% |
| 2022 | -7.5% |
| 2021 | +17.2% |
| 2020 | -9.2% |
| 2019 | +36.7% |
| 2018 | -25.9% |
| 2017 | +38.5% |
| 2016 | +15.4% |
| 2015 | -5.3% |
| 2014 | +10.4% |
| 2013 | +217.3% |
| 2012 | -28.7% |
| 2011 | -63.4% |
| 2010 | +76.3% |
| 2009 | +66.1% |
| 2008 | -84.4% |
| 2007 | -63.6% |
| 2006 | -3.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 96.4% over that stretch · deepest drop along the way 96.4%, back to its old high 201.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 60% over that stretch · deepest drop along the way 60.6%, back to its old high 9.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.5% over that stretch · deepest drop along the way 30.1%, back to its old high 11.7 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 11 sales ($14.3M), 11 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | Timothy J. Mattke Chief Executive Officer, Director | sell (plan) | $4.2M |
| Oct 1, 2026 | Timothy J. Mattke Chief Executive Officer, Director | sell (plan) | $3.6M |
| Sep 1, 2026 | Salvatore A Miosi President & COO | sell (plan) | $922K |
| Aug 3, 2026 | Salvatore A Miosi President & COO | sell (plan) | $891K |
| Jul 1, 2026 | Salvatore A Miosi President & COO | sell (plan) | $847K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9% | Jun 30, 2025 |
| Vanguard Portfolio Management | 8.4% | Mar 31, 2026 |
| JPMORGAN CHASE & CO. | 7.6% | Jun 30, 2025 |
| Dimensional Fund Advisors LP | 6.3% | Mar 31, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
| JPMORGAN CHASE & CO | 5.2% | Mar 31, 2026 |
| AQR Capital Management, LLC | 5.19% | Dec 31, 2025 |
| First Trust Portfolios L.P. | 2.34% | Mar 31, 2025 |
ETFs with the most weight in MTG
| LSAT Leadershares Alphafactor Tactical Focused ETF | 3.37% |
| DVLU First Trust Dorsey Wright Momentum & Value ETF | 2.88% |
| FTDS First Trust Dividend Strength ETF | 2.14% |
| MGMT Ballast Small/Mid Cap ETF | 1.93% |
| FXO First Trust Financials AlphaDEX Fund | 1.69% |
| PFI Invesco Dorsey Wright Financial Momentum ETF | 1.66% |
| XMVM Invesco S&P MidCap Value with Momentum ETF | 1.61% |
| PAMC Pacer Lunt MidCap Multi-Factor Alternator ETF | 1.24% |
What could go wrong
- A housing slump could sharply raise claims. Recessions, job losses and falling home prices make borrowers more likely to default, and MGIC pays the claims. Home prices rose 1.4% from January through November 2025, down from 4.8% in 2024.
- Heavy reliance on Fannie Mae and Freddie Mac. Most of MGIC's new insurance covers loans these two government-sponsored enterprises purchase. Changes to their rules, fees or charters, or ending the government control placed on them in 2008, could cut revenue or raise losses.
- Capital rules could squeeze returns and payouts. The GSEs' eligibility rules for mortgage insurers (PMIERs) and some state laws set minimum capital levels. Tougher rules could force MGIC to hold more capital, leaving less cash for shareholder dividends and buybacks.
- Losses can hit earnings suddenly. MGIC sets aside money for claims (loss reserves) only once a borrower falls behind, not for losses it expects later. Bad periods can hit earnings hard, and paid claims may differ substantially from reserves.
- Reinsurance could become costlier or less useful. MGIC uses reinsurance (insurance for insurers) to share losses and earn capital credit under GSE rules. If reinsurance becomes pricier or scarcer, or the GSEs grant less credit, MGIC may need more capital.
- Tough competition from FHA, VA and rivals. Loans backed by the government's FHA and VA programs made up 34.3% and 26.8%, respectively, of insured low down payment mortgages in 2025. Private rivals compete hard on price, which can squeeze MGIC's premium rates.
Recent events
- Quarterly results released
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
For income and retirement investors
MGIC has raised its dividend 5 years in a row, from $0.06 a share in 2020 to $0.56 in 2025. The 2025 dividend used about 18% of earnings and 16% of free cash flow (the cash left after running the business). The yield was 2.19% as of October 28, 2026. Share repurchases have been far larger: $2.37 billion from 2021 through 2025, against $591 million in dividends. In 2025 alone, MGIC repurchased 12% of the shares outstanding at the start of that year. The share count fell 39.5% between July 2021 and July 2026.
The stock has fallen hard in downturns. It lost 96.4% in the 2008 financial crisis and did not get back to its October 2007 peak until December 18, 2025. It fell 60.6% in the 2020 COVID crash and recovered in about 9.5 months. In the 2022 bear market it fell 30.1% and recovered in 11.7 months. Single stocks carry more risk than diversified funds.
Questions investors ask
How does MGIC make money?
MGIC makes money by charging premiums for private mortgage insurance and by investing the money it holds. Lenders obtain the coverage on low down payment home loans, and it pays some or all of their loss if a borrower defaults. Total revenue was $1.2 billion in 2025, and net income was $738 million, or $3.14 per diluted share. Revenue has barely grown, rising about 0.2% a year from 2020 to 2025. As of December 31, 2025, MGIC insured $303.1 billion of mortgages.
Does MGIC raise its dividend every year?
It has raised it 5 years in a row, through 2025. The dividend grew from $0.06 a share in 2020 to $0.56 in 2025, including a 14% increase from $0.49 in 2024. That is a short record. The payout is small compared with profits, at about 18% of 2025 earnings. The yield was 2.19% as of October 28, 2026. The company returns far more cash through share repurchases than through dividends.
Does MGIC do stock buybacks?
Yes, heavily. MGIC spent $2.37 billion repurchasing shares from 2021 through 2025, compared with $591 million in dividends. In 2025 it repurchased 12% of the shares outstanding at the start of the year, as part of about $915 million returned to shareholders. The share count fell 39.5% between July 2021 and July 2026. Fewer shares helped diluted earnings per share rise to $3.14 in 2025 from $2.89, even as net income slipped 3.2%. Repurchases depend on cash from its insurance subsidiary, and capital rules can limit that cash.
How did MGIC stock do in the 2008 financial crisis?
Very badly. MGIC shares fell 96.4% from October 9, 2007, to March 6, 2009, as falling US employment and home prices hurt the company and its industry. The stock lost 63.6% in 2007 and 84.4% in 2008. It did not get back to its October 2007 peak until December 18, 2025. As of October 28, 2026, the share price was still 2.9% below its level about 21 years earlier.
Why does MGIC depend on Fannie Mae and Freddie Mac?
Because they purchase the substantial majority of the loans behind MGIC's new policies. Fannie Mae and Freddie Mac cannot take on low down payment mortgages without credit protection such as private mortgage insurance. Their eligibility rules for mortgage insurers (PMIERs) also set how much capital MGIC must hold, and MGIC says it complies. Both were placed under government control, called conservatorship, in 2008. The company says the timing and effect of any reform, such as privatization, are uncertain.