June 8, 2012
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.
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