Insurance is a pretty simple business model. Collect premiums, hand out less in claims and invest the rest. Those firms that are able to do just that can become profit machines, generating billions in float income and dividends for their shareholders. Our latest Best Dividend Protection Stocks Model Portfolio pick has been doing just that for over 20 years. Investors can take advantage of this fact and its steady 2% before it goes ex-dividend on Thursday, March 9!
You can check out the Best Dividend Protection Stocks Model Portfolio to explore all the stocks.
Our pick’s prowess comes from its position in the property & casualty (P&C) market. As one of the largest P&C insurers on the planet, our pick covers a wide variety of insurance needs – from enterprises and governments to home and auto owners. Lately, our pick has continued to skew towards higher margined specialty insurance needs, producing ample cash flow and premiums collected.
As such, our pick has one of the best combined ratios in the businesses.
Going forward, rising rates will continue to boost interest income, while better underwriting through technology will help produce additional profits.
For conservative investors, our picks conservative nature, strong portfolio of assets, and ability to generate cash flow from its operations make it an ideal choice for dividend safety and protection.
