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The AIG stock is up 8% since it announced its fourth-quarter figures for 2013 in February. The latest update from the insurer was well received by traders as earnings exceeded estimates. This led to an increase in the dividend and the share buyback scheme.
The insurer started paying dividends last year after it repaid $180 billion to the US government because of the state bailout in 2008. This is a good example of a company coming out the other side of the credit crisis.
The share price is trading at 5313, well above the 200-day moving average of 4942, and recently the stock has broken out of the 4800-5200 range. If the results exceed estimates a test of the 5500 level is possible. However, if they fail, the share price could fall back to the 50-DMA of 5039.