Metlife Inc (MET), Prudential Financial Inc (PRU): This Retirement and Insurance Business Is Still Cheap

What I like about Prudential Financial Inc (NYSE:PRU) is its financial strength rating at A+ (Superior) from A.M. Best, especially for the recent successful $3 billion issuance of junior subordinated debt and the recent buyout of the Hartford’s Individual Life Insurance business.

In terms of dividend yield, investors might like Metlife Inc (NYSE:MET) the most with its highest dividend yield at 2.20%. Prudential Financial Inc (NYSE:PRU) ranked second with a 2% dividend yield. ING U.S. also pays shareholders dividends, but with a very small amount of $0.01 per share. Thus, ING U.S. offers shareholders dividend yield at nearly 0.1%.

My Foolish take

Looking forward, ING U.S. could continue to deliver decent returns to its shareholders with its improving operating results including return on equity and return on capital. If ING U.S. could reach its target of 12-13% ROE, ING U.S. could be worth at least its book value at around $59 per share, 88% higher than its current trading price.

Anh HOANG owns shares of ING U.S. The Motley Fool has no position in any of the stocks mentioned.

The article This Retirement and Insurance Business Is Still Cheap originally appeared on Fool.com and is written by Anh HOANG.

Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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