Top 5 Dividend Stocks to Buy According to Billionaire Cliff Asness

4. The Travelers Companies, Inc. (NYSE:TRV)

AQR Capital Management’s Stake Value: $717,093,080

Dividend Yield as of June 19: 1.62%

On June 12, Barclays analyst Alex Scott downgraded The Travelers Companies, Inc. (NYSE:TRV) to Underweight from Equal Weight. He also lowered the price target to $295 from $331. The analyst said that earnings upside in the property and casualty insurance sector is “becoming harder to find” as pricing softens, growth slows, and margin pressure increases. In a research note, Scott said Travelers’ earnings are likely to flatten and that downside risks are growing. Barclays believes the company’s slower rate and exposure growth, along with pressure on personal insurance margins, will lead to a gradual decline in underwriting margins.

Earlier, on May 26, Piper Sandler raised its price recommendation on Travelers to $340 from $329. It reiterated an Overweight rating on the shares. The firm cited recent stock performance and the passage of time as reasons for the target increase. Piper noted that it raised price targets for most insurance carriers while lowering targets for some insurance brokers. Following first-quarter results, the firm said it favors insurance carriers over brokers. According to Piper, underwriting performance provided more support than expected for carriers, while brokers delivered weaker organic growth results.

The Travelers Companies, Inc. (NYSE:TRV) provides property and casualty insurance products for automobiles, homes, and businesses. Its operating segments include Business Insurance, Bond & Specialty Insurance, and Personal Insurance.