3 Budding Dividend Growers for Retirement

These companies have put the pedal down on their regular payouts

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3 Budding Dividend Growers for Retirement

Travelers

trv 3 Budding Dividend Growers for Retirement% Dividend Growth Since 2010: 51.5%
Current Dividend Yield: 2.4%
P/E: 12

Travelers (TRV) is one of the largest writers of commercial U.S. casualty insurance and personal insurance.

2012 was a challenging year, primarily because of the inordinate number of claims and payouts resulting from Superstorm Sandy, with (pre-tax) catastrophic losses at just under $2 billion. And yet, TRV managed to grow revenues for a fourth consecutive year and increase its net income a whopping 73% to $2.473 billion in fiscal 2012 compared to $1.426 billion in 2011, primarily because of higher underwriting margins.

The company’s focus on those margins also produced a 12% increase in net income for the first quarter of 2013, even with a marginal decline in revenues.

And what income investors will really like: TRV boasted $530 million in operating cash flow for Q1 that would’ve covered three quarters of dividends at its current 50-cent payout — a dividend that TRV started paying in 2007 and that has improved more than 50% in the past three years.

Nobody can predict the problems year-to-year weather events might inflict on property and casualty insurers, but make no mistake — in the long haul, the best insurance companies make sure they get theirs. Considering how Travelers weathered Sandy, investors should feel pretty good about TRV’s future.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/3-budding-dividend-stocks-retirement-cr-ph-trv/.

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