5 Best Cheap Dividend Stocks to Buy

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1. The Travelers Companies, Inc. (NYSE:TRV)

Forward P/E as of April 9: 10.60

On April 8, Barclays analyst Alex Scott raised the firm’s price recommendation on The Travelers Companies, Inc. (NYSE:TRV) to $331 from $312. It reiterated an Equal Weight rating on the shares. The update came as part of a Q1 preview for the insurance group. The analyst said premium growth and broker organic growth “are likely to remain sluggish.” Barclays still expects solid margins and strong capital deployment to support book value growth in Q1.

During the Q4 2025 earnings call, CEO Alan Schnitzer said the company delivered strong results for both the quarter and the full year. He pointed to solid performance in underwriting and investments. He added that earnings were supported by strong underlying underwriting income and said current written margins remain attractive and sustainable.

Core income came in at $2.5 billion, or $11.13 per diluted share, with a core return on equity of 29.6%. Underwriting income rose 21% year over year, helped by favorable prior-year reserve development and lower catastrophe losses. Schnitzer also said disciplined execution across all three segments lifted net written premiums to $10.9 billion for the quarter. Within Business Insurance, net written premiums reached $5.5 billion. Domestic premiums in the segment grew 4% when excluding the property line.

The Travelers Companies, Inc. (NYSE:TRV) provides property casualty insurance across auto, home, and business. It operates through Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.

While we acknowledge the potential of TRV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRV and that has 100x upside potential, check out our report about the cheapest AI stock.

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