Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Insurance is a wonderfully simple business and one that generates plenty of cash flow. It’s no wonder why Warren Buffett loves it. Investors in our latest Best Dividend Stocks Model Portfolio stock should love it too. Our pick has delivered 40 years’ worth of steady dividend increases. This includes its latest 5% increase, which investors can take advantage of by buying the stock before it goes ex-dividend on Tuesday, February 14, with a regular quarterly payout of $0.42 per share!
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
The key to that long history of dividend increases remains our pick’s niche in the accidental death and dismemberment (A&D) insurance market. These supplemental insurance policies are designed to protect clients in the case of emergencies and hospitalizations. It’s an amazingly simple business and insurance product. It’s profitable too. Thanks to strong underwriting standards, our pick has been able to profit here and generate plenty of float income.
With interest rates rising, our pick has been able to see its float and bond portfolio generate plenty of additional gains, helping it boost profit and cash flow.
The end result is a top-notch dividend stock with plenty of stability to keep its payout rising for the long haul.