The Chubb Corp.
Of all the names that were on the bubble in light of rising interest rates on treasuries, perhaps The Chubb Corp. (CB) had the least wiggle room of all. Aside from the fact that its dividend yield of 2.10% was just hurdled by intermediate-term bonds, the insurers top line has only grown and almost imperceptible 1.0% per year for the past couple of years.
Worse, income has actually deteriorated considerably during that time, from $6.76 per share in 2010 to last year’s $5.69. Chubb has opted to up its dividend payout during that span anyway, but something’s got to give sooner or later.
Throw in the fact that analysts see another modest dip in income in the cards for 2014, and there’s a lot for dividend-lovers to be worried about.