Investment in the insurance industry can be summed up in one word – float. This pool of cash can be used to make strategic investments that generate even more income for the company. It’s the reason why Warren Buffett is as rich as he is. Our latest Best Financial Dividend Stocks List pick could be considered a mini-Buffett.
Our pick offers a variety of insurance products in the property & casualty marketplaces, including products both for businesses and individuals. The key lies within the strength of its underwriting and ability to generate strong premiums from its business lines.
And then it invests them well. While regulations require plenty of safe assets to be held, our pick has used its float and the interest on its float to make higher risk/higher reward investments, only strengthening its cash flows and dividends even further.
With over six decades’ worth of dividend increases behind it, our pick makes an ideal play in the sector. Investors should watch for the stock when it goes ex-dividend next on Friday, September 30 (estimated date).
In order to make more room for our insurance pick, we’ve removed a struggling title insurance stock.
You can check out the Best Financial Dividend Stocks List to explore all the stocks.
