7 Best Low-Risk Dividend Stocks To Invest In

3. Arthur J. Gallagher & Co. (NYSE:AJG)

Beta (5Y Monthly): 0.68

5-Year Average Revenue Growth: 11.09%

Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage and consulting firm, operating across brokerage services, risk management, and corporate solutions.

On January 30, Truist trimmed its price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $271 from $280. The firm also kept a Hold rating after reviewing the company’s Q4 results. The analyst said the move reflects valuation pressure across the P&C brokerage space. Even so, Truist views the stock as fairly valued at its current multiple, which already sits near the top of the range for large peers.

The day before, on January 29, the company reported a 24.5% increase in adjusted fourth-quarter profit. Stronger commissions and fees drove the upside as demand held firm. Insurance spending has stayed resilient, with businesses and individuals continuing to prioritize coverage against financial risks, natural disasters, and other potential losses, even while cutting back elsewhere.

Commissions climbed to $2.06 billion in the quarter, up from $1.50 billion a year earlier. Total fees rose nearly 34.8% to $1.2 billion. Insurance brokers work between clients and insurers, helping customers find coverage that fits their needs rather than selling policies directly. Their revenue is largely tied to commissions on premiums, which links performance closely to overall insurance activity.

Adjusted net profit came in at $620 million, or $2.38 per share, for the three months ended December 31. That compares with $498 million, or $2.16 per share, in the same period last year.