Lagging Dependable Dividend Stocks #2: Cincinnati Financial (CINF)
Dividend Yield: 3.7%
YTD Performance: -9.5%
Wall Street hasn’t been very kind to property and casualty insurance firm Cincinnati Financial (CINF). The stock is down 9.5% in 2014, and that’s despite a strong quarterly earnings beat in the fourth quarter. Although the 79 cents per share that CINF earned in the quarter easily bested estimates for EPS of 69 cents, that number did represent a decline of 35% year over year.
But perhaps the bigger threat to CINF stock comes from mother nature. The horrendous winter storms and the damage they brought throughout much of the country are likely to put a big dent in the company’s bottom line in the coming quarter. The potential for such a loss caused Zacks to downgrade CINF stock to “Neutral” from “Outperform.”
I am with Zacks here, and even though I think CINF stock offers a nice dividend yield at 3.7%, I think a wait-and-see approach is a wise move before piling in.