Insurance is a boring business. But as we’ve said time and time again, boring doesn’t mean unprofitable. In fact, insurance can be very profitable indeed. Our latest Best Financial Dividend Stocks List pick is a prime example of that. Our pick has managed to use its life insurance niche to drive rising cash flows and dividends for over a decade, while rewarding shareholders with a near 4% yield.
You can check out the Best Financial Dividend Stocks List to explore all the stocks.
The way our pick has continued to win has been its focus on providing life insurance needs through benefits channels. These policies are often paid by employers or through payroll deductions, providing guaranteed premiums and cash flowing to its bottom line. It has also helped create plenty of underwriting profits as well, given the nature of employment and odds of making a claim.
At the same time, our pick has expanded into new areas of benefit management, areas of insurance, and absence management software solutions for HR providers. This has created recurring revenues to add a healthy boost to its bottom line. Add in rising interest rates and additional gains on its float and you have a recipe for dividend success.
To make room for our new health insurance pick, we’ve been forced to remove one community bank and cut exposure to another regional rank and an insurer.
