19 Best Insurance Dividend Growth Stocks To Consider Now

If there is one thing every investor can appreciate, it is a growing stream of reliable dividends. Some sectors have more dividend champions than others. The insurance sector is a useful place for investors who want to align their personal risks with their portfolio. 

If insurance companies are able to increase prices and profits, owning the insurance companies should lead to stronger dividends at the same time that insurance costs will be increasing. However, it can be difficult for investors to determine which insurance stocks would be the best fit for their portfolio.

Insurers are big asset managers and depend on the market conditions. But not all insurers are equal. Life insurers suffer more on this weak interest environment than property and casualty insurer.

Attached you can find the best investment opportunities from the industry. I've only listed those stocks with a long dividend growth history. In addition, each of the stocks has a low forward P/E and a positive earnings growth outlook for the next five years. In addition, the debt-to-equity ratio is under 0.5. As a result, 19 stocks joined the list.

Here are the results:

4 Hot Dividend Growing Incurance Stocks You Must Know (ACE, AFL, TRV, UNH)

During the past week I've visited my girlfriend and came back home with some ideas about investing. 

Earlier this year, I've noticed that insurance stocks are great cash flow producer and some of them have a really low dividend payout ratio. They invest a huge amount of money to buy back own shares and they are really cheap valuated.

Warren Buffet likes insurer but he prefers today stocks from the cable business. I also see that those companies have a very attractive Price-to-Ebitda ratio.

However, I bought two German insurers last Friday. They yield over 3 percent and I like to increase my positions over the next time if they become cheaper.

The American stock market also has great insurer to look at. Aflac and Travelers are my two favorites followed by Chubb Corp. Those are also long-term dividend grower and part of David Fish's CCC List.

Below I've highlighted a few large cap insurer from the accident & health insurance industry as well as stocks from the property & casualty insurance industry. In addition, I've added large caps from the health care plans industry. From there came only one stock, the United Health Group.

All of the selected stocks have raised dividends by more than five consecutive years. Just dare a glace at my thoughts. I know that those stocks are not very popular but they are very attractive in terms of price for cash.

4 Great Dividend Growth Stocks With Several Break-Out Signals

Do you know the feeling of when you buy a stock and nothing happens over years? 

It's very disappointing to put money into a great stock for that you have done the right research and nothing happens because the market doesn’t discover the potential of your target company.

Timing is also important for stock investors. On the capital market, you can make 100 percent in only six months if you catch the right purchasing time and you can make the same performance over ten years. Both is possible but its definitely better to take the first option.

I'm personally a long-term growth investor and more focused on fundamentals than on technical indicators but those can help you to receive a better return.

Today I try to find some stocks that have risen over the short and mid-term. I used a 20 day to 200 day average to get some great stock ideas. These are my fundamental criteria:

Dividend yield over 2%.
Dividend growth rate over the past five years greater than 5%. 
The dividend payout is under 75%. 
The forward P/E is below 15. 
The PEG ratio is under 1.50. 
Total debt to equity under 0.40.

Insurer Aflac: The New Stock Holding For The Dividend Yield Passive Income Portfolio

Last Friday, I purchased the cheapest Dividend Champion with a forward P/E of 9.10. The company is acting within the accident and health insurance sector and is named AFLAC. Insurer AFLAC raised its dividends over a period of 30 consecutive years and yields at 2.36 percent. Earnings per share are expected to grow by 5.58 percent for the next year and 6.92 percent for the upcoming five years. That’s a solid value and if it comes true, a P/E below 10 is damn cheap in my view.

The stock suffers a little bit under recent damage claims as well as the low interest environment. I personally don’t have an idea how big the risks of a rising interest rate could be but I believe that they can be managed.

AFLAC is up 13.2 percent this year and gained 40 percent over the recent year. With a beta ratio of 1.89, AFLAC seems like a very risky and volatile stock but if you look at the fundamentals, you can see that it's not true. Also the debt to equity ratio of 0.28 is low. The company has around USD 4.2 billion in long-term debt at a net income of USD 2.8 billion

Earnings and Dividends From Aflac

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For readers who a new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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The current AFL stake cost me around USD 1,200 bucks and will give me approximately USD 28 dividend income for the full year. The stock is underweighted with 0.75 percent portfolio share.

Latest Portfolio Transactions (Click to enlarge)

Dividend Yield Passive Income Portfolio I (Click to enlarge)

Dividend Yield Passive Income Portfolio II (Click to enlarge)

The full-year dividend yield income of the portfolio is now estimated at USD 2,090.33.  With USD 41.436,05 in cash on hands and bank accounts, it should be possible to hit my aim of a USD 3,000 dividend income by the end of the year. All I need to do is to buy stocks with a yield on cost for around 3 percent.

The current yield on cost amounts to 3.49 percent while the actual portfolio yield is a little bit lower at 3.21 percent due to the capital gains.

Portfolio Performance (Click to enlarge)

All stock holdings from the Dividend Yield Passive Income Portfolio are up in average by 9.28 percent since the date of funding. The underperformance to the main indices is reasonable to the slow purchasing process. In a down-going market, my strategy would perform better than the market. But I am not interested in quick money. I want to build a long-term dividend growth portfolio which doubles each ten years from alone.

Here is the income perspective:

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	16.44	3.73		28.90	50	$64.50	$1,725.50
LMT	Lockheed Martin C	13.33	3.86		92.72	20	$89.00	$2,311.00
INTC	Intel Corporation	11.62	3.87		21.27	50	$45.00	$1,152.00
MCD	McDonald's Corpor	18.58	3		87.33	15	$45.15	$1,504.05
WU	Western Union Com	10.47	2.73		11.95	100	$47.50	$1,732.00
PM	Philip Morris Int	17.16	3.85		85.42	20	$68.78	$1,772.20
JNJ	Johnson & Johnson	24.49	2.76		69.19	20	$49.80	$1,844.60
MO	Altria Group Inc	17.12	4.76		33.48	40	$70.40	$1,486.00
SYY	Sysco Corporation	20.85	3.1		31.65	40	$44.40	$1,441.20
DRI	Darden Restaurant	15.97	4.09		46.66	30	$61.50	$1,484.70
CA	CA Inc.	14.37	3.36		21.86	50	$50.00	$1,482.50
PG	Procter & Gamble	17.99	2.9		68.72	25	$58.20	$2,034.25
KRFT	Kraft Foods Group	21.25	3.47		44.41	40	$80.00	$2,306.40
MAT	Mattel Inc.	18.96	3.07		36.45	40	$53.60	$1,695.20
PEP	Pepsico Inc. Com	22.24	2.51		70.88	20	$43.60	$1,728.20
KMB	Kimberly-Clark Co	21.52	3.13		86.82	15	$46.50	$1,492.35
COP	ConocoPhillips Co	10.6	4.09		61.06	20	$52.80	$1,320.00
GIS	General Mills In	18.37	2.67		42.13	30	$41.10	$1,550.40
UL	Unilever PLC Comm	21.06	3.06		39.65	35	$44.91	$1,473.50
NSRGY	NESTLE SA REG SHR	18.84	3.25		68.69	30	$65.31	$2,017.50
GE	General Electric	17.5	3.13		23.39	65	$48.10	$1,606.80
ADP	Automatic Data Pr	24.77	2.33		61.65	25	$42.50	$1,822.00
K	Kellogg Company C	26.18	2.64		61.52	25	$44.00	$1,683.00
KO	Coca-Cola Company	21.36	2.62		38.83	40	$42.80	$1,643.60
RTN	Raytheon Company	12.22	3.01		57.04	20	$42.00	$1,396.00
RCI	Rogers Communicat	11.83	4.1		51.06	50	$83.30	$2,030.00
GPC	Genuine Parts Com	19.88	2.51		77.06	20	$41.28	$1,648.00
TSCDY	TESCO PLC SPONS A	225.6	4.07		17.98	110	$75.68	$1,859.00
APD	Air Products and	17.35	2.79		85.71	15	$40.50	$1,454.85
GSK	GlaxoSmithKline P	19.17	4.47		52.16	30	$70.38	$1,564.50
WMT	Wal-Mart Stores	15.24	2.24		79.25	20	$34.72	$1,561.60
BTI	British American	16.92	3.86		114.6	23	$95.22	$2,448.35
CHL	China Mobile Limi	10.37	4.18		55.32	25	$54.95	$1,316.75
MMM	3M Company Common	18.21	2.12		110.27	15	$36.75	$1,742.85
TUP	Tupperware Brands	22.87	2.48		80.98	15	$29.40	$1,177.95
IBM	International Bus	13.65	1.77		206.35	8	$28.00	$1,548.32
HAS	Hasbro Inc.	18.43	3.18		44.09	30	$44.40	$1,361.40
T	AT&T Inc.	27.64	5.01		34.47	30	$53.70	$1,074.30
WAG	Walgreen Co. Comm	22.11	2.18		44.25	30	$33.00	$1,518.30
AFL	AFLAC Incorporate	9.37	2.33		59.39	20	$27.60	$1,187.80
							$2,090.33	$65,198.92
							Average Yield	3.21%
							Yield On Cost	3.49%