Cincinnati Financial Corp (NASDAQ:CINF)

CAPS Rating: 4 out of 5

The Company is a holding company managing its business through its subsidiaries. It markets Commercial lines property casualty insurance, Personal lines property casualty insurance, Life insurance and Investments through insurance agencies in 32 states.

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Player Avatar valari25 (81.11) Submitted: 9/8/2010 3:44:50 PM : Outperform Start Price: $17.27 CINF Score: +28.92

I finally started a small position (50 shares) today. I picked it much lower on CAPS but there was such a glut of awesome dividend paying companies that an insurance company wasn't worth the risk, especially one so heavily invested in equities. Since the runup from 2009, most companies I follow have appreciated too much that they don't meet my criteria for a new position. CINF is still trading below book value, has an above average yield that is only 50% of FCF and they have raised it every year for 50 years. The last raise was small but I expect the increases to grow in size as the economy continues to recover and their substantial (25% of float) equities investments keep growing.

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