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Top U.S. Insurance Dividend Stocks
UPDATED May 27, 2023
What are the best U.S. Insurance Dividend Stocks?
According to our Simply Wall St analysis these are the best U.S. Insurance dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
7 companies meet this criteria in the U.S. market
Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: FNF's dividend (5.18%) is in the top 25% of dividend payers in the US market (5.15%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 69.7% below our estimate of its fair value
Earnings are forecast to grow 33.02% per year
Risks
Profit margins (6.2%) are lower than last year (14.1%)
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AXS's dividend (3.34%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Rewards
Trading at 64.4% below our estimate of its fair value
Earnings are forecast to grow 22.46% per year
Risks
Profit margins (4.3%) are lower than last year (11.5%)
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: RE's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Rewards
Trading at 67.3% below our estimate of its fair value
Earnings are forecast to grow 35.01% per year
Risks
Shareholders have been diluted in the past year
Profit margins (5.2%) are lower than last year (11%)
Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: AIZ's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Rewards
Trading at 42% below our estimate of its fair value
Earnings are forecast to grow 34.56% per year
Risks
Profit margins (2.3%) are lower than last year (6%)
Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: STC's dividend (4.01%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Future Dividend Coverage
Rewards
Trading at 65.4% below our estimate of its fair value
Earnings are forecast to grow 25.75% per year
Risks
Profit margins (3.5%) are lower than last year (9.5%)
Donegal Group Inc., an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals.
Dividend Criteria
Stable Dividend
Growing Dividend
Notable Dividend
High Dividend: DGIC.A's dividend (4.65%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Future Dividend Coverage
Earnings Coverage
Rewards
Earnings are forecast to grow 128.21% per year
Risks
Shareholders have been diluted in the past year
First American Financial Corporation, through its subsidiaries, provides financial services.
Dividend Criteria
Stable Dividend
Growing Dividend
Notable Dividend
High Dividend: FAF's dividend (3.76%) is low compared to the top 25% of dividend payers in the US market (5.15%).
Future Dividend Coverage
Earnings Coverage
Rewards
Trading at 55.3% below our estimate of its fair value
Earnings are forecast to grow 38.32% per year
Risks
Profit margins (3%) are lower than last year (12%)