In this article, we discuss the 12 best insurance dividend stocks to buy now. You can skip our detailed insurance sector analysis and forecasts and jump right in to read on Top 5 insurance dividend stocks to buy now.
The insurance industry in the United States can be divided into several categories, including life insurance, health insurance, property insurance, casualty insurance, and reinsurance. In 2022, global annual insurance premiums will exceed $7 trillion and the sector is likely to experience a compound annual growth rate of 8.5% until 2028. Over the past few years, the insurance sector has demonstrated resilience and adaptability in the face of various social and geopolitical events. However, there are many other persistent factors currently contributing to the widening protection gap, including natural disasters, cyber risks, and the net zero economy. According to a report by Ernst & Young, the protection gap totaled more than $1.4 trillion in 2021 and is expected to widen in the coming years as well.
Recent data breaches and cyberattacks have increased the importance of cyber insurance between individuals and organizations. According to a report by McKinsey & Company, cyber economic losses amounted to $945 billion in 2020, more than 100 times the total premium market of $9 billion in 2021. The report also stated that two-thirds of companies in a survey conducted by McAfee reported type of cyber incidents in 2019. For these reasons, US insurance companies are deploying digital technologies to satisfy customers. In this regard, artificial intelligence (AI) and machine learning are widely favored by US insurance companies, which first came to prominence during the 2020 pandemic when major organizations adopted work-from-home policies. Bloomberg cited data by Allied Market Research, which revealed that the AI insurance market is expected to grow at a compound annual growth rate of 32.5% by 2031, reaching $45.7 billion globally.
The growing role of AI in the insurance market is covered in one of our articles, titled 10 Hot Insurance Stocks to Buy Now. This report also highlighted the positive outlook for the sector this year as many individuals around the world began to take an interest in their retirement and health plans. The insurance industry returns also showed a stable performance for the sector over the past 12 months. The S&P Insurance Select Industry Index is down 5.37% in the past year, compared to a 9.61% decline in the S&P 500. Some popular insurance stocks include Chubb Limited (NYSE: CB), The Allstate Corporation (NYSE: ALL), and Travelers Companies (NYSE: TRV). .
Image via Nick Chong on Unsplash
Our methodology:
For this list, we’ve selected several distributed stocks from the insurance sector that specialize in various categories, including property insurance, casualty insurance, life insurance, and reinsurance. These companies have been raising their dividends for at least 10 years. We then picked 12 of these stocks that have the most hedge fund investors. We measured hedge fund sentiment using Insider Monkey’s database of 943 hedge funds.
The best dividend insurance to buy now
12. Hannover Insurance Group (NYSE: THG)
Number of hedge fund holders: 16
Dividend yield as of April 5: 2.54%
Hanover Insurance Group, Inc. (NYSE: THG) is an American insurance company that provides auto, home and business insurance to its customers. In April, Piper Sandler raised its price target per share to $159 and maintained a Neutral rating on the stock, which provided a positive outlook for the property casualty insurance sector.
In the fourth quarter of 2022, Hanover Insurance Group (NYSE: THG) reported revenue of $1.33 billion, an increase of 9.14% over the same period last year. During the quarter, the company returned nearly $29 million to shareholders in dividends, making it one of the best dividend stocks on our list.
Hanover Insurance Group, Inc. (NYSE: THG) has a quarterly dividend of $0.81 per share and has a dividend yield of 2.54%, as of April 5th. The company has maintained a streak of continuous profit growth over the past 15 years. Other popular insurance dividend stocks include Chubb Limited (NYSE: CB), The Allstate Corporation (NYSE: ALL), and Travelers Companies, Inc. (NYSE: TRV).
At the end of December 2022, 16 hedge funds tracked by Insider Monkey reported stakes in The Hanover Insurance Group, Inc. (NYSE:THG), up from 14 in the previous quarter. These shares have a total value of more than $68.2 million. Among those hedge funds, Markel Gayner Asset Management was the company’s leading shareholder in the fourth quarter.
11. Assurance, Inc. (NYSE: AIZ)
Number of hedge fund holders: 18
Dividend yield as of April 5: 2.38%
Assurant, Inc. (NYSE: AIZ) is a New York-based insurance company that primarily provides risk management products and services to consumers. For fiscal year ’22, the company returned $718 million to shareholders in dividends and stock repurchases. Its revenue for the fourth quarter of 2022 was $2.65 billion, showing a growth of 3.1% over the same period last year.
Assurant, Inc. (NYSE:AIZ), one of the top dividend-paying stocks, pays a quarterly dividend of $0.70 per share and has a dividend yield of 2.38%, as of April 5. 18 years.
Keefe Bruyette Assurant, Inc. covered (NYSE:AIZ) in a March investor note and stated that it will outperform in the next few months. Given this, the company upgraded the stock to Outperform and maintained a price target of $152.
At the end of the fourth quarter of 2022, 18 hedge funds tracked by Insider Monkey reported holding stakes in Assurant, Inc. (NYSE: AIZ), worth more than $265 million. Lyrical Asset Management was the company’s major shareholder in the fourth quarter.
10. RLI Corp. (NYSE: RLI)
Number of hedge fund holders: 19
Dividend yield as of April 5: 0.80%
RLI Corp. (NYSE: RLI) specializes in property and casualty insurance, and is headquartered in Illinois, United States. The company is one of the best dividend stocks on our list as it has raised its payout 47 years in a row. It currently pays a quarterly dividend of $0.26 per share for a dividend yield of 0.80%, effective April 5th.
RLI Corp. NYSE: RLI is committed to returning its shareholders in the fourth quarter of 2022. During that period, the company paid out about $330 million to shareholders in a dividend.
As of the end of the fourth quarter of 2022, 19 hedge funds tracked by long-term Insider Monkey for RLI Corp. (NYSE: RLI), owning stakes worth more than $251.3 million combined. With approximately 1.2 million shares, Markel Gayner Asset Management was the company’s major shareholder in the fourth quarter.
9. American Financial Group, Inc. (NYSE: AFG)
Number of hedge fund holders: 24
Dividend yield as of April 5: 2.08%
American Financial Group, Inc. (NYSE: AFG) is an Ohio-based financial services company with insurance and investment businesses. In the fourth quarter of 2022, the company reported revenue of $1.62 billion, up 11.7% over the same period last year. For the full year, it returned more than $1.23 billion to shareholders, including $1.02 billion in special dividends.
On April 3, American Financial Group, Inc. (NYSE:AFG) announced a quarterly dividend of $0.63 per share, which was in line with its previous earnings. The company’s current dividend growth streak is 17, making it one of the best dividend stocks on our list. The dividend yield on April 5 came in at 2.08%.
At the end of the fourth quarter of 2022, 24 hedge funds in the Insider Monkey database owned stakes in American Financial Group, Inc. (NYSE: AFG), as in the previous quarter. The total value of these bets is over $294.6 million.
8. Old Republic International Corporation (NYSE: ORI)
Number of hedge fund holders: 24
Dividend yield as of April 5: 3.99%
Old Republic International Corporation (NYSE: ORI) is an American insurance company that deals in property, title and bond insurance. The company remained committed to its obligations to shareholders last quarter as it paid $243.7 million to shareholders, including $67.2 million in dividends. It is among the best dividend stocks on our list.
On February 23, Old Republic International Corporation (NYSE: ORI) announced a 6.5% increase in its quarterly dividend, to $0.245 per share. This marks the 43rd consecutive year of earnings growth for the company. The EPS is 3.99% as of April 5th.
At the end of the fourth quarter of 2022, 24 hedge funds were tracked by long-term Insider Monkey from Old Republic International Corporation (NYSE: ORI), compared to 25 in the previous quarter. The total value of the stakes owned by these hedge funds is over $148.7 million.
7. First American Financial Corporation (NYSE: FAF)
Number of hedge fund holders: 28
Dividend yield as of April 5: 3.77%
First American Financial Corporation (NYSE: FAF) is a California-based company that provides insurance and settlement services to the real estate and mortgage sectors. In February, Stephens upgraded the stock to Overweight and also raised his price target for the stock to $72. The company values the company’s business model.
First American Financial Corporation (NYSE: FAF), one of the top dividend stocks, currently pays out a quarterly dividend of $0.52 per share. The company has an 11-year streak of continuous dividend growth. The EPS is 3.77% as of April 5th.
As of the end of the fourth quarter of 2022, 28 hedge funds tracked by Insider Monkey owned stakes in First American Financial Corporation (NYSE: FAF), with a combined value of more than $1.04 billion. Among those hedge funds, Ariel Investments was the company’s leading shareholder in the fourth quarter.
6. Brown & Brown, Inc. (NYSE: BRO)
Number of hedge fund holders: 29
Dividend yield as of April 5: 0.80%
Brown & Brown, Inc. (NYSE: BRO) ranked sixth on our list of the best dividend stocks. The company is a leading insurance brokerage firm and also provides risk management solutions to its clients. It currently pays a quarterly dividend of $0.115 per share and has a dividend yield of 0.80% as of April 5th.
In addition to Brown & Brown, Inc. (NYSE: BRO), Chubb Limited (NYSE: CB), The Allstate Corporation (NYSE: ALL), and Travelers Companies, Inc. (NYSE: TRV) is the other top-dividing stock from the insurance sector.
Of the 943 hedge funds in the Insider Monkey database, 29 own stakes in Brown & Brown, Inc. (NYSE: BRO) in the fourth quarter of 2022, up from 27 in the previous quarter. The total value of these stakes is more than $1.43 billion.
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disclosure. no one. 12 The best dividend insurance to buy now Originally posted on Insider Monkey.