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10+ Year-increasing Insurance Provider Reaffirmed in Best Financial Dividend Stock List

The prospect of rising interest rates has put downward pressure on most sectors of the U.S. stock market. But financials and insurance companies, in particular, stand to benefit from a rising interest-rate environment. As the global economy enters into a more chaotic period, insurance providers with diversified business models and available liquidity could provide solid investment opportunities.

Although well-run financial companies don’t need rising interest rates to prop up their profits, the shift to a tighter monetary regime doesn’t hurt. As rates continue to rise, insurance companies can expect to see an increase in non-GAAP pre-tax earnings, albeit not as dramatically as other financial service providers.

Our insurance pick is not only benefiting from dramatic changes in the macro-environment, but its underlying business is also improving. Its correlation to small businesses, due to its client base, is also a tailwind as more companies rebound following the COVID-19-induced restrictions of the past two years. Our pick has set its next ex-dividend payment for Wednesday, June 1.

You can check out the Best Financials Sector Dividend Stocks List.

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