I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is free, just like here at Mr. Free At 33. I hope you enjoy!
I keep hearing this term: TINA.
There Is No Alternative.
That’s the mantra for the stock market these days; with no viable alternative, investors are piling into stocks.
Of course, this has a way of increasing prices.
That’s the way supply and demand works.
And with the broader market regularly breaking through new all-time highs, this demand can clearly create distortion.
What’s an investor to do?
Well, I think the best thing to do is to keep your eye on the long term.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
Hi Jason
I haven’t yet added any insurance business to my portfolio. While TRV’s dividend growth for the yield isn’t that great, I agree that the payout ratio promises continued dividend growth.
Need to do my own due diligence on fundamentals before adding to my watch list though.
Cheers
Philipp
Philipp,
I must say, I’ve done well in this space. Wonderful insurance companies (like TRV) have treated me very well, so I have no complaints. There’s a lot of unlocked potential here, as rising rates would unleash even more possible growth. But even as is, there’s a lot to like.
Thanks for dropping by!
Best regards.
TRV is probably the only insurer I own, but it’s definitely an industry I want to expand into portfolio. I used to be against it because they don’t “own” anything like the banks do, but I’ve warmed up to it over the last few years.
Sincerely,
ARB–Angry Retail Banker
ARB,
Insurers have been great to me. I profit quite a bit from the business model but also require very little of it in my own life (since I own very little). It’s great arbitrage. 🙂
TRV specifically has operated very conservatively over the years. That’s partly why you see that top-line issue. It’s just conservative underwriting. But I think the business is great.
Thanks for dropping by!
Cheers.