Cincinnati Financial Corp (NASDAQ:CINF)

geat div 51 yrs - consecutive increase

I didn't even back-test this theory with the 1970's (maybe you could do that), but I'm picking dividend aristocrats/champions/whatever they're called to outperform through stagflation.

Insider buying and good dividend payer.

dividend aristocrat

Large cash hoard will keep it out of trouble,insider buying.

HIGH DIVIDENDS AS BONDS PLUMMET

A nice strong dividend legend. Pays out great, there will always be a need for insurance, and Cincinnati Financial is definitely a seasoned vet is any economy, and has been rewarding it's shareholders year after year. It has gotten shaken up by a few tornadoes recently, but it'll soon regain it's composure and walk right through them. I like CINF long.

Sean Williams

Insurers don't get much better than Cincinnati Financial. The company began paying a quarterly dividend to shareholders in 1954 and hasn't lowered its quarterly distribution since 1960. Currently yielding 5.4%, Cincinnati Financial is one of the highest-yielding dividend aristocrats and one of the more secure dividends in the sector. Let's take a closer look at how it's able to sustain this tantalizing dividend.

If you base everything just on last quarter's results, you'd be sorely disappointed. Last quarter marked the second highest catastrophe losses the company has seen in the past 12 years and is the primary culprit as to why its combined ratio -- essentially a measure of how profitable it was for an insurer to underwrite policies -- was in excess of 100 in most of its business segments. A figure over 100 indicates that it was unprofitable to write policies during that period. However, if you look at Cincinnati Financial's historical performance, this is an anomaly.

The real gem behind this dividend growth story is the company's aggressive, yet still prudent, approach to investing. With $12 billion on its balance sheet, Cincinnati Financial has taken to putting 26% of its portfolio -- a figure far and away higher than many of its peers -- into dividend-paying equities. The remaining cash is predominantly divided among high-rated bonds. While this is an approach that could be problematic if the market suffers a meltdown like we saw in 2008, its portfolio should easily outpace many of its peers' based on investment returns.

Top Dividend Stock

Price beaten down by recent losses due to tornado damage claims. But they are conservative underwriters currently selling below book value with a long history of dividend growth. I am also an insurance customer, and they are KILLING me on my homeowners insurance due to two large claims recently, so from me alone they are making a thousand or so extra profit.

Dividend aristocrat with a low dividend payout ratio makes this stock a strong performer as it can obviously weather recessions and booms while continuously raising its dividend.

It's really hard to go wrong with the insurance business. If your underwriting is conservative, which CINF's is, then insurance is one of the most profitable business models in existence. Statistically speaking, there's practically no way you lose money.

Solid company, great dividend.

Dividend Champion that still has some growth in it.

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.

Am I missing something? 5.9% yield while the payout ratio is only 55%, and its trading under book value, and has a low P/E? It seems to good to be true

With a P/E under 11 and a yield above 5% now seems like a good time to buy this one.

I'm putting an outperform on this one. Trading just below it's book value, I find it difficult to believe that the market is so pessimistic with regard to this stock. BV (mrq) of $29.38, cash flow of approximately $2.96/share, about $1.2B in treasury stock (about $7.37/share). If this company can grow earnings just 5% for the next several years, this stock is worth $50-55 right now even AFTER taking a wildly conservative discount on those future earnings. This stock has an almost obscene dividend yield at 5.4%. This one has the markings of a good investment --- some serious up side, coupled with a big scoop of downside protection baked into the current price.

Good value. Solid dividend (kept dividend during recent downturn)