The Dividend Daily

Property and casualty insurer The Chubb Corporation (CB) said late Thursday that its third quarter profit more than doubled from last year, beating analyst estimates.

The Warren, New Jersey-based company posted third quarter net income of $596 million, or $1.69 per share, compared with $264 million, or 73 cents per share, in the year-ago period. On average, Wall Street analysts expected only $1.27 per share.

Net written insurance premiums dropped 7% from last year, however, to $2.7 billion.

Looking ahead, the company raise its full-year guidance to $5.90 to $6 per share, up from a prior outlook for $5.20 to $5.50 per share. Analysts currently expect $5.51 per share for the year.

Chubb Corp shares fell $1.06 or -2%, in premarket trading Friday.

The Bottom Line
We had removed shares of CB from our “Recommended” list on Jan.9, when the stock was trading at $46.42. The company has a 2.60% dividend yield, based on last night’s closing stock price of $53.79. The stock has technical support in the $47-$48 price area. If the shares can firm up here, we see overhead resistance around the $55 price level. We would remain on the sidelines for now.

The Chubb Corporation (CB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.