Higher interest rates aren’t bad for all industries. In fact, for some sectors, higher rates can be a blessing. And that includes our latest Best Dividend Protection Stocks Model Portfolio pick. Higher interest rates are lending support for its rich dividend history and stable 2.2% yield!
Our pick is one of the largest underwriters of both property and casualty (P&C) insurance in the U.S. Businesses and consumers turn to our pick to help protect a variety of needs. Its huge size and scope provide our pick with an ample float from which to boost profits further, while new sources and complexities of underwriting have boosted its margins.
The added bonus has been rising interest rates. With our pick now earning more on its reserves and its float, our pick should be able to see its profits grow in the new year, supporting dividend growth and share buybacks.
All in all, our pick’s strong history of underwriting and current reserve wins make it an ideal pick for conservative investors.
In addition to increasing our position in the insurance pick, we’ve also added a packaging company and removed a warehousing specialist and consumer products firm.
You can check out the Best Dividend Protection Stocks Model Portfolio to explore all the stocks.
