There’s a reason why Warren Buffett loves the insurance industry. And it comes down to one word – float. Insurers capable of generating plenty of float from their premiums can invest that money, generate higher returns and in turn reward shareholders – something our latest Best Dividend Stocks Model Portfolio pick has been doing for more than 40 years. And it’s been sharing that wealth through rising dividends and special payouts. Investors can take advantage of the firm’s strong 3.8% yield before it goes ex-dividend on Friday, December 2, with a regular quarterly dividend of $0.23 per share!
The secret to our insurance pick’s dividend strength and special payouts has been its focus on businesses and the enterprise market. It’s a complex world out there and risk management is key. And that protection costs a hefty penny. With a focus on specialty insurance for a variety of industries, like trucking, construction, aviation and energy, our pick has been able to feast on high premiums.
And that strong underwriting has provided plenty of float interest to play with. With a large investment portfolio, our pick has been able to generate high cash flow, which has continued to grow as rates have risen.
In the end, our insurance pick provides plenty of stability and payout growth that should power a portfolio for years to come.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
