+ Watch CB
on My Watchlist
A holding company with subsidiaries engaged in the property and casualty insurance business.
CB has an A for financial health and a PEG less than 1 on Morningstar, so it's one of my long picks.
CB is a great investment opportunity on a recent dip in prices. The recent drop has brought all CB's ratios low for the industry average, with both P/E and price to free cash flow both about half the average. The company also manages little debt, and shows that a little dip in price will not be catastrophic to the overall company. Also, with a healthy 2.1% yield on the dividend and constant 10% growth on said dividend over 5 years combined with a payout ratio in the low 20%'s, you can expect continued advancement and thus increased share value. Finally, for all chart watchers, the recent dip in price bounced off a support level and is more likely to go up from that level.
Strong management commitment to returning profits to shareholders, through both share buybacks and regular dividend increases. Solid combined ratios and a strong position by specializing in insurance segments with fewer competitors should allow Chubb to be a winner over the long haul.
$88 Graham Number shows +20% upside.Not an explosive growth story with 4% yearly revenue growth over the last decade, but a constantly growing dividend(10+ years of increases), quality valuations(12 PE & 11 Price to Cash Flow), a 12% profit margin, and low debt, make Chubb worth a look.
HIGH DIVIDENDS AS BONDS PLUMMET
Great company, but I think over the next week or so, I'll make a few points, and close this pick. My company used to use them, and instead use Travelers now.
Pays dividend, low P/E, currently out of favor with the market due to its value price.
It has brand value among high net worth individualsUnder priced on discounted future earnings
One of the few insurance companies that actually pays legitimate claims without a fight. (And reasonably fights where it should.) Chubb charges higher premiums than others, but in the long run people will see that it provides better value. I represent policyholders in disputes with insurers. I don't see Chubb as often as other companies. And their people just seem smarter than everyone else in the industry. If customers see the value then the market should too.
Insurance revenues should climb as recession effects diminish
One of the highest quality Insurance Companies. I will get in now in anticipation that Insurance Stocks will move out of "Soft Market" pricing which is the reason most have extremely low PEs
cash flow, roe
Natural destination for companies that want to move their insurance away from AIG.
Insurance is a good business during this economy. Competition is decimated, balance sheet better than most.
increased dividend and is taking market share from AIG
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