Bookmark and Share

The Best Insurance Dividend Stocks For 2017

The insurance industry has created many great fortunes. That's because it's slow changing and highly profitable. Investing in insurance stocks is how Shelby Davis made $900 million from $50,000 starting in his late 30s.

Going forward, the insurance industry should benefit from a key growth catalyst, which is rising interest rates. Higher interest rates widen the spread between what insurance companies earn on their invested capital, versus what they pay out in claims.

With that in mind, income investors looking for strong dividend stocks to buy in 2017 and beyond should take a closer look at the following six insurance companies.



1 comment:

  1. Howard1/22/2017

    Good post, Tom. As I've said before, this is what you should be doing more of--looking at the best dividend options in different sectors.

    Of this list, I own ORI and CINF. In addition to the good info you posted, I like the fact that the two companies have paid dividends without a decrease for 37 and 56 straight years.

    MCY is very tempting, with its 4.2% dividend and the fact that it has managed to increase dividends for 30 consecutive years. But that 112% payout ratio scares me, despite your good point about the current rising interest rate environment being good for insurance stocks.

    Two other stocks should have made your list, IMO: MET (MetLife, which I own) and DGICA (Donegal, which I do not own).

    MET's div is 2.9%, it's payout ratio is under 50%, and it's paid divs for 17 straight years without a decrease. Plus, the div has more than doubled in the past 5 years.

    DGICA's div is 3.2%, it's payout ratio is 54%, and it's paid divs for 16 straight years without a decrease. Div growth has been slow, though. Just 15% in the past 5 years.

    I hope you continue to compare dividend stocks within various sectors.

    ReplyDelete

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.