Insurance is an amazing business to be in. As you’re waiting to pay out claims, you’re able to invest premiums collected from customers, earn interest on those premiums and invest that interest even further. For firms that do it right, it can mean decades of dividend growth and profits. And that’s just what our latest Best Financial Stocks Dividend List pick has done for nearly 40 years!
Our pick is an underwriter of insurance, but not in the fields of health or auto insurance. The firm writes A&D and supplemental insurance policies designed to protect clients in the case of emergencies and hospitalizations. It’s an amazingly profitable business and our pick’s strength in underwriting has helped it to produce top results.
The power of its niche was made known during the pandemic. While it had a slight hiccup of underwriting losses, the long-term nature of its float and investments helped it stay profitable. In that, it still managed to reward shareholders with rising dividends and buybacks.
All in all, our pick represents just how good the insurance industry can be for investors.
In addition to our new insurance pick, we’ve also added another insurance underwriter, reduced our exposure to regional banks and removed two other bank stocks from the list.
You can check out the Best Financial Dividend Stocks List to explore all the stocks.
