Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
As investors worry about the regional banks and the health of the financial sector, one financial industry continues to prove its mettle. And that includes our newest Best Dividend Stocks Model Portfolio pick. Our pick has been a hallmark of stability throughout its history, rewarding shareholders with nearly four decades’ worth of dividend increases. Investors can take advantage of its current 42 cent per share quarterly dividend by purchasing shares before its ex-dividend date of Tuesday, May 16.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
The industry in question and how our pick has been able to thrive? The insurance sector.
While banks have struggled with their bond assets and matching reserves, the insurance sector is uniquely positioned to take full advantage of rising rates. And our pick in particular has several advantages. Our pick is a leading player in the A&D insurance market. These supplemental insurance policies are designed to protect clients in the case of emergencies and hospitalizations. It’s an amazingly profitable yet simple business. And in that, our pick’s strength in underwriting has helped it to produce top results.
And because of its strong underwriting, our pick has been able to keep plenty of its premiums for itself and grow its float, taking full advantage of bond’s higher interest rates.
For investors, our pick’s focus and steady earnings has continued to pay benefits with a long dividend history, low volatility and buyback strength. With a 2.4% yield, our pick makes for ideal dividend portfolio selection.