In this article, we discuss 5 best insurance dividend stocks to buy now. If you want to read our detailed analysis of the insurance sector and its outlook, go directly to read 12 Best Insurance Dividend Stocks To Buy Now.
5. Prudential Financial, Inc. (NYSE:PRU)
Number of Hedge Fund Holders: 29
Dividend Yield as of April 5: 6.08%
Prudential Financial, Inc. (NYSE:PRU) is a New Jersey-based company that specializes in insurance, retirement planning, and investment management. In April, JPMorgan upgraded the stock to Overweight with a $114 price target. The firm expects the company to produce ‘healthy’ near-term results.
On February 8, Prudential Financial, Inc. (NYSE:PRU) declared a 4.2% hike in its quarterly dividend to $1.25 per share. Through this increase, the company took its dividend growth streak to 15 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on April 5 came in at 6.08%.
As per Insider Monkey’s Q4 2022 database, 29 hedge funds owned stakes in Prudential Financial, Inc. (NYSE:PRU), up from 21 a quarter earlier. The collective value of these stakes is over $136 million. Citadel Investment Group was the company’s largest stakeholder in Q4.
Follow Prudential Financial Inc (NYSE:PRU)
Follow Prudential Financial Inc (NYSE:PRU)
4. Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 35
Dividend Yield as of April 5: 2.21%
Travelers Companies, Inc. (NYSE:TRV) specializes in commercial property casualty insurance. In addition to this, the company provides a wide range of insurance-related services to its consumers. The company is one of the best dividend stocks on our list as it has raised its dividends for 33 years in a row. It currently offers a per-share dividend of $0.93 every quarter with a dividend yield of 2.21%, as of April 5.
In the fourth quarter of 2022, Travelers Companies, Inc. (NYSE:TRV) reported revenue of $8.8 billion, which showed a 10% growth from the same period last year. The company returned over $21.5 billion to shareholders in dividends and share repurchases throughout FY22.
At the end of Q4 2022, 35 hedge funds in Insider Monkey’s database reported having stakes in The Travelers Companies, Inc. (NYSE:TRV), down from 37 a quarter earlier. These stakes have a collective value of over $608.5 million.
Follow Travelers Companies Inc. (NYSE:TRV)
Follow Travelers Companies Inc. (NYSE:TRV)
3. Lincoln National Corporation (NYSE:LNC)
Number of Hedge Fund Holders: 36
Dividend Yield as of April 5: 8.34%
Lincoln National Corporation (NYSE:LNC) is an American holding company that specializes in various insurance and investment management businesses. Jefferies raised its price target on the stock to 455 in February and maintained a Buy rating on the shares. The firm appreciated the company’s free cash flow generation.
Lincoln National Corporation (NYSE:LNC) currently pays a quarterly dividend of $0.45 per share and has a dividend yield of 8.34%, as of April 5. The company has been rewarding shareholders with increased dividends for the past 11 years, which places it as one of the best stocks on our list.
As of the close of Q4 2022, 36 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation (NYSE:LNC), worth roughly $505 million collectively. Among these hedge funds, Lyrical Asset Management was the company’s leading stakeholder in Q4.
Follow Lincoln National Corp (NYSE:LNC)
Follow Lincoln National Corp (NYSE:LNC)
2. The Allstate Corporation (NYSE:ALL)
Number of Hedge Fund Holders: 37
Dividend Yield as of April 5: 3.15%
The Allstate Corporation (NYSE:ALL) is one of the leading providers of supplemental insurance coverage, based in Illinois, US. On February 17, the company announced a 4.7% increase in its quarterly dividend to $0.89 per share. This was the company’s 15th consecutive year of dividend growth. The stock’s dividend yield came in at 3.15% on April 5.
In April, Piper Sandler raised its price target on The Allstate Corporation (NYSE:ALL) to $150 with an Overweight rating on the shares, presenting a positive stance on the property casualty insurers. The firm further mentioned that the sector will be defensive in a volatile financial market.
The number of hedge funds tracked by Insider Monkey owning stakes in The Allstate Corporation (NYSE:ALL) stood at 37 in Q4 2022. The stakes owned by these hedge funds have a total value of over $401 million.
Follow Allstate Corp (NYSE:ALL)
Follow Allstate Corp (NYSE:ALL)
1. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 45
Dividend Yield as of April 5: 1.70%
Chubb Limited (NYSE:CB) tops our list of the best dividend stocks from the insurance sector. The company has operations in over 54 countries. It has been raising its dividends consistently for the past 29 years while paying uninterrupted dividends for 121 years. The company pays a quarterly dividend of $0.83 per share and has a dividend yield of 1.70%, as of April 5.
At the end of Q4 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited (NYSE:CB) grew to 45, from 41 in the previous quarter. The collective value of these stakes is over $2.18 billion.
Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:
“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”
Follow Chubb Ltd (NYSE:CB)
Follow Chubb Ltd (NYSE:CB)
You can also take a look at 12 Cheap Penny Stocks to Buy According to Hedge Funds and Top 20 Beer Companies in the World
Hedge Fund Resource Center