5 Undervalued Dividend Aristocrats To Buy According to Analysts

2. Chubb Limited (NYSE:CB)

Upside Potential as of May 7: 20.9%
P/E Ratio as of May 7: 15.88

An American insurance company, Chubb Limited (NYSE:CB) is next on our list of the best dividend aristocrat stocks. In April, Barclays raised its price target on the stock to $260 with an Overweight rating on the shares, following the company’s recent quarterly earnings beat. The firm also highlighted the company’s consumer business.

Chubb Limited (NYSE:CB) currently pays a quarterly dividend of $0.83 per share for a dividend yield of 1.67%, as of May 7. The company has a 29-year run of raising its dividends. Moreover, it has paid regular dividends to shareholders for past 121 years.

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.”