+ Watch CB
on My Watchlist
A holding company with subsidiaries engaged in the property and casualty insurance business.
ht Jim O'Shaughnessy
Good historical profitability, improving fundamental metrics, not overly leveraged, cheap on basis of average book value
reasonable valuation: low PE ~10, consistent earnings, good CF flow, strong financial position, 1.98% dividend
CB has an A for financial health and a PEG less than 1 on Morningstar, so it's one of my long picks.
Dividends500 tracks the 200 strongest dividends in the S&P 500. To qualify as a strong dividend, the company must meet two simple requirements:- A payout ratio below 50%- An increasing dividend from the prior yearBecause there are more than 200 dividend paying companies in the S&P 500 that meet these requirements, the qualifying companies with the largest dividend yields were chosen. Dividends500 intends to test this FactSet article, which highlights these strong dividend paying companies and their outperformance versus the S&P 500 as a whole (Page 12).http://www.factset.com/websitefiles/PDFs/dividend/dividend_12.16.13If you have questions or see something you think is inaccurate feel free to let me know.
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.
Stellar underwriting with excellent history of capital allocation. At an earnings multiple lower than the broad market, there's no reason CB cannot outperform over the next 5-10 years.
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
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