Given the political conflicts, souring economy and persistent pandemic, boring can really be beautiful these days. And nothing could be more boring than the insurance industry. Akin to watching paint dry, insurance is as dull as it comes. But that industry can be just what investors need to overcome the current malaise. Featuring strong cash flows, growing dividends and steady revenues, the insurance industry is a top choice for the months ahead.
And our Best dividend Stocks List pick in the industry could be one of the best bets.
Focusing on insurance brokerage (i.e., the selling of insurance), our pick removes much of the financial risk of underwriting from its books. Here, our pick is able to provide customers the right policy at the right price. For its bottom line, this can provide plenty of larger margins than its underwriting peers.
But our pick has plenty of growth behind it as well.
Through its history of M&A, our pick has completed many bolt-on transactions of smaller insurance brokerages, providing our pick with increased business lines, higher-margined specialty lines of insurance and increased size/scale. Meanwhile, a new focus on risk consulting services have boosted margins even further, which has only served to produce ample cash flows and profits.
With an uninterrupted dividend history stretching back to 1995, our insurance pick is a top choice for today’s rocky market.
To summarize, here are five reasons why you should own this stock:
- One of the largest insurance brokerage firms, pulling in more than $5 billion in revenue over the last 12 months!
- Global footprint with offices in nearly 50 countries and sales in more than 150.
- Paid a steady growing dividend since 1995 with its latest increase being nearly 5%.
- Found growth in continued M&A transactions, having already completed three deals in 2021!
- Healthy payout ratio of 42% and growing yield of 1.47%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
