Watching paint dry could be more fun than investing in the insurance industry. Afterall, providing coverage of property, lives or whatever else isn’t particularly exciting. There’s no new tech gadget or life-saving oncology drug to cheer on. But that doesn’t mean it can’t be very profitable or lack growth. On the contrary, the insurance business can be very exciting on that front.
Just take our Best Dividend Stocks List pick in the sector.
As one of the largest insurance brokers in the world, our pick has turned selling, so-called boring insurance into a steady stream of cash flows for its coffers and shareholders. During the pandemic alone, our pick pulled in more than $6 billion in revenues. The key has been its focus on the “brokerage” side of insurance – our pick removes much of the financial risk of underwriting from its books.
But our pick has a ton of growth behind it as well.
Given its leadership position in the insurance industry, our pick has continued to use M&A to its advantage. This includes its most recent blockbuster transaction, which will add well-established player’s reinsurance, property and specialty lines businesses to its umbrella. At the same time, consulting services and analytics are adding a powerful one-two punch to its brokerage business. Using technology, our pick is able to not only identify risks, but offer the best insurance solutions to cover those potential problems – and it gets to charge a fee on both ends.
For investors, this creates a boring yet powerful dividend player that can win in any market environment.
To summarize, here are five reasons why you should own this stock:
- One of the largest insurance brokerage firms, pulling in more than $6 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%.
- Growth in continued M&A transactions with a blockbuster deal just announced.
- Healthy payout ratio of 37% and growing yield of 1.30%.
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.
