Why Safety Insurance Is Poised to Keep Poppin'

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Safety Insurance Grouphas earned a coveted five-star ranking.

With that in mind, let's take a closer look at Safety Insurance and see what CAPS investors are saying about the stock right now.

Safety Insurance facts

Headquarters (founded)

Boston (1979)

Market Cap

$753.3 million

Industry

Property and casualty insurance

Trailing-12-Month Revenue

$703.9 million

Management

CEO David Brussard (since 2001)
CFO William Begley Jr. (since 1999)

Return on Equity (average, past 3 years)

6.5%

Cash / Debt

$35.4 million / $0

Dividend Yield

4.9%

Competitors

Arbella Mutual Insurance
Liberty Mutual Holding
MAPFRE U.S.A.


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 507 members who have rated Safety Insurance believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, JohnStuartMill, tapped Safety Insurance as an income opportunity worth considering:

The 58% payout ratio has me a bit worried, but is due to the recent big storm hit. The 4.9% [dividend yield] could possibly be a short term high. I would buy in here with no expectations of an increase in the dividend rate in the near future. In fact, if the dividend were further increased, it would worry me.

With so much of the financial industry getting bad press these days, it may be a greedy when others are fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar financial that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Safety Insurance Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Safety Insurance Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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