Lagging Dependable Dividend Stocks #1: Chubb Corporation (CB)
Dividend Yield: 2.3%
YTD Performance: -10.5%
Much like its fellow insurer Cincinnati Financial, insurance holding company Chubb Corporation (CB) also is likely to come under fire from the tens of millions of dollars in estimated losses from the recent winter storms. And the hit it has taken so far lands it in the top spot on our list of lagging dependable dividend stocks.
The potential for said loss has caused CB stock to drop more than 10% year-to-date. Unlike CINF stock, which has a dividend yield of 3.7%, CINF stock offers a smaller, 2.3% dividend yield that makes its current situation a little concerning.
One thing CB stock has in its favor is strong growth, which can be seen in its most recent quarterly report, which showed a near five-fold surge in earnings year-over-year. That move was muted in by the company’s warning of pressured earnings from the latest storms. Even an announced $1.5 billion share buyback failed to lift the shares.
Here again, I’d be in wait-and-see mode for this insurer before nibbling on CB stock.
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As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.