Insurance is a boring business. But boring doesn’t have to mean low profit. Thanks to the beauty of underwriting and the ability to make money from its float, an insurance firm can be a very profitable endeavor. Just ask our latest Best Dividend Stocks Model Portfolio pick. It’s been using its property & casualty niche to drive steady dividend growth since its spin-off nearly 30 years ago. Today investors can score a decent 2.6% yield!
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Our pick focuses on consumers, offering everything from home and renters insurance to car and basic term life policies. It’s a good business to be in and with one of the top brand names in the sector, it continues to gather new customers.
The win is that our firm has used technology to its advantage. Both in platform and underwriting. By using technology, our pick has continued to drive profits and reduce its own risks. And with new specialized policies targeting consumers in the post-COVID-19 world, our pick has seen its float grow. Rising interest rates have helped too by driving profits.
All in all, our pick continues to prove that insurance isn’t really a boring business. But one, that produces real results and dividends for shareholders.
In order to make room for our latest insurance pick, we’ve been forced to remove an industrial manufacturer from the list.
