5 Best Undervalued Aristocrats to Buy in September

4. Chubb Limited (NYSE:CB)

P/E Ratio: 11.63

Chubb Limited (NYSE:CB) is a Switzerland-based insurance company that provides insurance services related to property and casualty, accidental and health, and reinsurance. On August 11, the company declared a quarterly dividend of $0.83 per share, consistent with its previous dividend. As of September 7, the stock’s dividend yield came in at 1.71%. The company has been raising its dividends consistently for the past 29 years.

In Q2 2022, Chubb Limited (NYSE:CB) reported an operating cash flow of $2.72 billion. The company’s operating income grew to $1.79 billion, up from $1.62 billion in the previous quarter. Its net income for the quarter came in at $1.22 billion and its revenue stood at $9.5 billion. The company returned $1.48 billion to shareholders during the quarter, $348 million of which represented dividend payments.

In July, Jefferies maintained its Buy rating on Chubb Limited (NYSE:CB) with a $244 price target, highlighting the company’s pricing power and innovative business model.

The number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited (NYSE:CB) stood at 35 in Q2 2022, growing from 31 in the previous quarter. These stakes are collectively valued at over $1.68 billion. Viking Global owned the largest position in the company in Q2.

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.”