Dow Dividend Checkup: Travelers
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics from across the investing world.
Travelers is a well-run insurance company with solid underwriting and effective pricing. It recently raised its dividend by 12%, and has been very good about returning capital to shareholders since the financial crisis, according to Morningstar. Its yield is pretty good at 3.04% -- that stacks up well compared with Dow average of 3.1%. Competitor AIG doesn't pay a dividend. Aflac pays a yield of 3.4%. So far, the stock is up 2% for the year, and it has performed much better than competitor Hartford Financial Services Group over the past year. It's a conservative company that has been pushing through prices increases. However, David Einhorn sold his stake in Travelers last quarter. Even then, it's probably not a bad insurance play as a result of its solid dividend.
Travelers offers a pretty solid yield for investors at the moment. If you'd like to learn more about some outstanding dividend-payers, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.
At the time this article was published John Reeveshas no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendAflac. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.